Explore BrainMass

Explore BrainMass

    Fundamental Accounting Principles

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

    Please see the attached file for full problem description.

    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.

    © BrainMass Inc. brainmass.com March 4, 2021, 5:51 pm ad1c9bdddf
    https://brainmass.com/business/business-math/fundamental-accounting-principles-involved-14401

    Attachments

    Solution Preview

    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 ...

    Solution Summary

    This question involves the fundamentals of accounting. The adjusting entries to report that securities at fair trade values are given.

    $2.49

    ADVERTISEMENT