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118 on january 1 2012 valuation allowance for trading investment has a zero balance 4299013

 

118. On January 1, 2012, Valuation Allowance for Trading Investment has a zero balance .  On December 31, 2012, the cost of trading securities portfolio was $52,400, and the fair value was $53,000. 
Required:
Prepare the December 31, 2012, adjusting journal entry to record the unrealized gain or loss on trading investments. 

 

 

119. Skyline, Inc. purchased a portfolio of trading securities during 2012.  The cost and fair value of this portfolio on December 31, 2012, was as follows:

Name

Number of Shares

Total Cost

Total Fair Value

Alcon, Inc.

1,200

$16,000

$15,000

Easton Company

700

23,000

21,500

Panther Company

300

9,000

9,200

Total

 

$48,000

$45,700

 

 

 

 

Required:
Provide the journal entry to record the adjustment of the trading security portfolio to fair value on December 31, 2012.
Where will the information from the journal entry be reported on the financial statements? 

 

 

 

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