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Uttinger Company has the following data at December 31, 2017. Securities Cost Fair Value...

Question:

Uttinger Company has the following data at December 31, 2017.

Securities Cost Fair Value
Trading $121,500 $125,000
Available-for-sale 101,100 93,800

The available-for-sale securities are held as a long-term investment.

Required:

Prepare the adjusting entries to report: (1) Trading securities at fair value and (2) Available-for-sale securities at fair value.

Investment

Investments are usually a long term asset recorded in the balance sheet. Classification of investment may be trading, available for sale or held to maturity.

Answer and Explanation:

Account Title Debit Credit
Trading Securities$3,500
Unrealized Gain or Loss- P/L $3,500

Account Title Debit Credit
Unrealized Gain or Loss-...

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What is an Investment? - Definition & Overview

from Corporate Finance: Help & Review

Chapter 2 / Lesson 6
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