Fernandez Corp. invested its excess cash in securities during 2020. As of December 31, 2020, the securities portfolio consisted of the following common stocks.

Instructions

a. What should be reported on Fernandez?s December 31, 2020, balance sheet relative to these securities? What should be reported on Fernandez?s 2020 income statement?

On December 31, 2021, Fernandez?s securities portfolio consisted of the following common stocks.

During the year 2021, Fernandez Corp. sold 2,000 shares of Poley Corp. for $38,200 and purchased 2,000 more shares of Lindsay Jones, Inc. and 1,000 shares of Duff Company.

b. What should be reported on Fernandez?s December 31, 2021, balance sheet? What should be reported on Fernandez?s 2021 income statement?

On December 31, 2022, Fernandez?s securities portfolio consisted of the following common stocks.

During the year 2022, Fernandez Corp. sold 3,000 shares of Lindsay Jones, Inc. for $39,900 and 500 shares of Duff Company at a loss of $2,700.

c. What should be reported on the face of Fernandez?s December 31, 2022, balance sheet? What should be reported on Fernandez?s 2022 income statement?

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Cost Fair Value Security Lindsay Jones, Inc. Poley Corp. Arnold Aircraft Quantity 1,000 shares 2,000 shares 2,000 shares $ 15,000 40,000 $ 21,000 60,000 72,000 Totals $127,000 $123,000 Cost Fair Value Security Lindsay Jones, Inc. Lindsay Jones, Inc. Quantity 1,000 shares 2,000 shares 1,000 shares 2,000 shares $ 15,000 33,000 $20,000 40,000 Duff Company 16,000 12,000 22,000 Arnold Aircraft 72,000 Totals $136,000 $94,000