(APPENDIX) TRADING SECURITIES Franzen Finance began operations in 2009 and invests in securities classified as trading securities....

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(APPENDIX) TRADING SECURITIES Franzen Finance began operations in 2009 and invests in securities classified as trading securities. During 2009, it entered into the following trading security transactions:

Purchased 20,000 shares of ABC common stock at $38 per share Purchased 32,000 shares of XYZ common stock at $17 per share At December 31, 2009, ABC common stock was trading at $39.50 per share and XYZ common stock was trading at $16.50 per share.

Required:

. Provide the necessary adjusting entry to value the available-for-sale securities at fair market value.

. What is the income statement effect of this adjusting entry?

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Cornerstones Of Financial Accounting Current Trends Update

ISBN: 9781111527952

1st Edition

Authors: Jay Rich , Jeff Jones, Maryanne Mowen , Don Hansen

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