Franzen Finance began operations in 2012 and invests in securities classified as trading securities. During 2012, it

Question:

Franzen Finance began operations in 2012 and invests in securities classified as trading securities. During 2012, it entered into the following trading security transactions:
Purchased 20,000 shares of ABC at $ 38 per share
Purchased 32,000 shares of XYZ at $ 17 per share
At December 31, 2012, ABC was trading at $ 39.50 per share and XYZ was trading at $ 16.50 per share.
Required:
1. Prepare the necessary adjusting entry to value the trading securities at fair market value.
2. Conceptual Connection: What is the income statement effect of this adjusting entry? Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...