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    Fundamental Accounting Principles

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    E3-23 At December 31, 2002, the trading securities for Yanu, Inc. are as follows.

    Instructions
    (a) Prepare the adjusting entry at December 31, 2002, to report the securities at fair value.
    (b) Show the balance sheet and income statement presentation at December 31, 2002, after
    adjustment to fair value.

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    https://brainmass.com/business/business-math/fundamental-accounting-principles-involved-14401

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    Hi there,
    Security; Cost; FMV
    A 17,500 16,000
    B 12,500 14,000
    C 23,000 19,000

    Security A:
    DR: Investment equity 16,000
    DR: Loss on devaluation 1,500
    CR: Cost of shares 17,500

    Security B:
    DR: Investment equity 12,500
    CR: Gain on appreciation 1,500
    CR: Cost of shares 14,000

    Security C:
    DR: Investment equity 19,000
    DR: Loss on devaluation 4,000
    CR: Cost of shares 23,000

    Balance sheet and income statement after adjustment to FMV:

    Balance Sheet:
    Investments 49,000
    Total Assets 49,000

    Income Statement:
    Total loss on investments 4,000

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    © BrainMass Inc. brainmass.com December 24, 2021, 4:54 pm ad1c9bdddf>
    https://brainmass.com/business/business-math/fundamental-accounting-principles-involved-14401

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