**Journal Entries for Trading Investments**The investments of Charger Inc. include an investment of trading securities of Raiders Inc., purchased on February 24, 20Y7, for $216,000. The fair value of the securities on December 31, 20Y7, is $288,000.**a. Journalize the Entries for the February 24 Purchase and the Adjustment to Fair Value on December 31, 20Y7.** If an amount box does not require an entry, leave it blank.**20Y7 Feb. 24**- Debit: [Select account] - Credit: [Select account] - Amount: [Enter amount]**20Y7 Dec. 31**- Debit: [Select account] - Credit: [Select account] - Amount: [Accounting numeric field]**Feedback**- *Check My Work*a. Increase the investment and reduce Cash for the number of shares times the per share price.The unrealized gain (credit) or unrealized loss (debit) is the difference between the acquired per share price and the market price per share at 20Y7 taken times the number of shares acquired. The offset account for the gain or loss entry is the valuation allowance account.**b. How is an Unrealized Gain or Loss for Trading Investments Reported on the Financial Statements?**(Note: This section prompts for a response regarding the reporting on financial statements but does not provide a detailed answer, implying further user input is needed.)(No graphs or diagrams are present in the image.)

Answered: The investments of Charger Inc. include…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 1, Valuation Allowance for Trading Investments had a zero balance. On December 31, the cost of the trading securities portfolio was $379,600, and the fair value was $358,900. Prepare the December 31 adjusting journal entry to record the unrealized gain or loss on trading investments. Refer to the Chart of Accounts for exact wording of account titles.
Question: For the following transactions involving investments in marketable securities assess the financial statement effects of trading and of available-for-sale securities. (Assume that investments are classified as trading.) (1) Ohlson Co. purchases 5,200 common shares of Freeman Co. at $16 cash per share. (2) Ohlson Co. receives a cash dividend of $1.25 per common share from Freeman. (3) Year-end market price of Freeman common stock is $17.5 per share.
I need help with questions c and d
Provide Journal entries necessary to record Topsails investment in Charlie companys bonds from January 2 ,20X2 to February 1,20X3.Your entry to record the sale on February 1,20X3 shuld include a reclassification adjustment .Provide Supporting calculations
At December 31, 2020, the cost and fair value trading securities for Crane, Inc. are as follows. Security Cost Fair Value A $18,800 $17,800 B 13,100 14,800 C 22,400 19,700 $54,300 $52,300 (a) Prepare the adjusting entry at December 31, 2020, to report the securities at fair value. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List debit entry before credit entry.)
9
Valuing Trading Securities at Fair ValueOn January 1, Valuation Allowance for Trading Investments had a zero balance. On December 31, the cost of the trading securities portfolio was $47,000, and the fair value was $48,300.Prepare the December 31 adjusting journal entry to record the unrealized gain or loss on trading investments.Dec. 31
Adjusting AFS Debt Securities to Fair Value A portfolio of investments of available-for-sale securities held by Dow Inc. is as follows. Dece. 31, Year 1 Cost Fair Value Eastern Corp. bonds $240,000 $256,000 Western Corp. bonds 400,000 410,000 Total $666,000 $640,000 Dece. 31, Year 2 Cost Fair Value $280,000 Eastern Corp. bonds $240,000 Western Corp. bonds 400,000 380,000 Total $640,000 $660,000 The Fair Value Adjustment account had a $0 balance on January 1 of Year 1. No sales or purchases took place in the available-for-sale investment portfolio in Year 1 and Year 2. a. Record the adjusting entry on December 31 of Year 1 to adjust the debt investments to fair value. b. Record the adjusting entry on December 31 of Year 2 to adjust the debt investments to fair value. Date a. Dec. 31, Year 1 b. Dec. 31, Year 2 Account Name To record adjusting entry. To record adjusting entry. Amount in income statement Net gain (loss) on investment $ Dr. c. Indicate how the adjustment to fair value in…
Trading Securities at Fair Value On January 1, 20Y9, Valuation Allowance for Trading Investments had a zero balance. On December 31, the cost of the trading securities portfolio was $62,600, and the fair value was $63,500. Journalize the December 31, 20Y9, adjusting entry to record the unrealized gain or loss on trading investments. If an amount box does not require an entry, leave it blank. Dec. 31
DO NOT GVIE SOUTION IN IMAGE
Valuing Trading Securities at Fair Value On January 1, Valuation Allowance for Trading Investments had a zero balance. On December 31, the cost of the trading securities portfolio was $65,000, and the fair value was $66,700. Prepare the December 31 adjusting journal entry to record the unrealized gain or loss on trading investments.
Instructions On January 1, Valuation Allowance for Available for Sale investments had a zero balance On December 21, the cost of the available for sale securities was $78,400, and the fair value was $72,290 Prepare the adjusting entry to record the unrealized gain or loss on available-for-sale investments on December 31. Refer to the Chart of Accounts for exact wording of account tities.

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