Question
Before its acquisition by Royal Dutch Shell, Pennzoil Company held a portfolio of trading equity securities that cost $660,100,000 and had a market value of
Before its acquisition by Royal Dutch Shell, Pennzoil Company held a portfolio of trading equity securities that cost $660,100,000 and had a market value of $955,182,000 on January 1. Assume the same portfolio was held until the end of the first quarte of the year. The mamrket value of the portfolio was $980,160,000 at January 31, $940,000,000 at February 29, and $960,060,000 at march 31.
1. Prepare a tabulation showing the balance sheet presentation and income statement for monthly reporting purposes.
2. Show journal entries for January, Febrary and March.
3. How would your answer to requirement 1 change if the securities were classified as available for-sale?
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