Bicknel Technologies Inc. purchased the following securities during 2010: At the beginning of 2010, Bicknel Technologies had

Question:

Bicknel Technologies Inc. purchased the following securities during 2010:

At the beginning of 2010, Bicknel Technologies had a zero balance in each of its market adjustment accounts. During 2011, after the 2010 financial statements had been issued, Bicknel determined that security B should be reclassified as an available-forsale security and security C should be reclassified as a trading security. The fair values on the date of the transfer are $5,500 for security B and $17,000 for security C.
Prepare the journal entries to do the following:
1. Adjust the portfolio of securities to its fair value at December 31, 2010.
2. Reclassify security B as an available-for-sale security in 2011.
3. Reclassify security C as a trading security in2011.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...