Last Unguaranteed Financial Inc. purchased the following trading securities during 2016, its first year of operations: Name _____________ Number of Shares Cost Arden Enterprises Inc. ………………………….5,000…………………$150,000 French Broad Industries Inc…………………….2,750…………………….66,000 Pisgah Construction Inc…………………………1,600…………………..104,000 Total………………………………………………………………………$320,000 The market price per share for the trading security portfolio on December 31, 2016, was as follows: Market Price per Share, Dec. 31, 2016 Arden Enterprises Inc…………………………$34 French Broad Industries Inc. …………………..26 Pisgah Construction Inc. ………………………60 a. Provide the journal entry to adjust the trading security portfolio to fair value on December 31, 2016. b. Assume the market prices of the portfolio were the same on December 31, 2017, as they were on December 31, 2016. What would be the journal entry to adjust the portfolio to fair value? View Solution: Last Unguaranteed Financial Inc purchased the following trading securities during

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

Last Unguaranteed Financial Inc. purchased the following trading securities during 2016, its first year of operations: Name _________________________ Number of Shares____________ Cost Arden Enterprises Inc. ………………………….5,000…………………$150,000 French Broad Industries Inc…………………….2,750…………………….66,000 Pisgah Construction Inc…………………………1,600…………………..104,000 Total………………………………………………………………………$320,000 The market price per share for the trading security portfolio on December 31, 2016, was as follows: Market Price per Share, Dec. 31, 2016 Arden Enterprises Inc…………………………$34 French Broad Industries Inc. …………………..26 Pisgah Construction Inc. ………………………60 a. Provide the journal entry to adjust the trading security portfolio to fair value on December 31, 2016. b. Assume the market prices of the portfolio were the same on December 31, 2017, as they were on December 31, 2016. What would be the journal entry to adjust the portfolio to fair value? View Solution:
Last Unguaranteed Financial Inc purchased the following trading securities during

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions