Some of Cullumber Lake Limited's investment securities are classified as trading securities and some are classified as non-trading. The cost and fair value of each category at December 31, 2020, were as follows.Trading securitiesNokn-trading securitiesCost¥96,500¥59,500Fair Value¥85,000$64,000Unrealized Gain (Loss)¥(11,500 )¥4,500At December 31, 2019, the Fair Value Adjustment-Trading account had a debit balance of ¥2,600, and the Fair ValueAdjustment-Non-Trading account had a credit balance of ¥6,200.Prepare the required journal entries for each group of securities for December 31, 2020.

Trading securities are those securities that the entity holds to grab short-term profit. It means…

Some of Cullumber Lake Limited's investment securities are classified as trading securities and some are classified as non- trading. The cost and fair value of each category at December 31, 2020, were as follows. Trading securities Nokn-trading securities Fair Value ¥96,500 ¥85,000 ¥59,500 $64,000 Cost Unrealized Gain (Loss) ¥(11,500 ) ¥4,500 At December 31, 2019, the Fair Value Adjustment-Trading account had a debit balance of ¥2,600, and the Fair Value Adjustment-Non-Trading account had a credit balance of ¥6,200. Prepare the required journal entries for each group of securities for December 31, 2020.

Some of Cullumber Lake Limited's investment securities are classified as trading securities and some are classified as non- trading. The cost and fair value of each category at December 31, 2020, were as follows. Trading securities Nokn-trading securities Fair Value ¥96,500 ¥85,000 ¥59,500 $64,000 Cost Unrealized Gain (Loss) ¥(11,500 ) ¥4,500 At December 31, 2019, the Fair Value Adjustment-Trading account had a debit balance of ¥2,600, and the Fair Value Adjustment-Non-Trading account had a credit balance of ¥6,200. Prepare the required journal entries for each group of securities for December 31, 2020.

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 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...

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