At December 31, 2020, the end of its first year of operations, the non-trading securities for Oriole AG are as follows. They have thesame cost and fair value. The securities are considered to be a long-term investment.SecurityABCCostCHF17,80012,90022,700CHF53,400Fair ValueCHF 15,80014,50018,600CHF48,900Prepare the adjusting entry at December 31, 2020, to report the securities at fair value. (Credit account titles are automaticallyIndented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for theamounts)

A journal entry is used to record a business in the company's accounting records. A journal entry…

Answered: At December 31, 2020, the end of its…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 9E

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At December 31, 2020, the trading securities for Crane, Inc. are as follows. Security Cost Fair Value A $17,500 $16,100 B 12,600 13,900 C 23,100 19,100 $53,200 $49,100 (a) Prepare the adjusting entry at December 31, 2020, to report the securities at fair value. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31
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On January 1, 2020, Maya Company appropriately reported a credit balance of P125,000 (before income tax effect) in the fair value adjustment account in conformity with the valuation of investment to other comprehensive income. There was no change during 2020 in the composition of the portfolio of equity security Investments. Pertinent data on December 31, 2020 as follows:Securities Cost MarketC PI,500,000 PI,625,000P 1,250,000 1,300,000A 2,250,000 2,350,000Total P5,000,000 P5,275,000What amount of unrealized gain or loss on these securities should the company report in its 2020 statement of comprehensive income, ignore income tax effect? a. none b. 375,000 c. 400,000 d. 625,000

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