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E3-23 At December 31, 2002, the trading securities for Yanu, Inc. are as follows.
(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.
Security; Cost; FMV
A 17,500 16,000
B 12,500 14,000
C 23,000 19,000
DR: Investment equity 16,000
DR: Loss on ...
This question involves the fundamentals of accounting. The adjusting entries to report that securities at fair trade values are given.