Question
FKG Inc. carries the following investments on its books at December 31, 2015, and December 31, 2016. All securities were purchased during 2015. Trading Securities:
FKG Inc. carries the following investments on its books at December 31, 2015, and December 31, 2016. All securities were purchased during 2015.
| Trading Securities: | |||
| Company | Cost | Value, Dec. 31, 2015 | Value, Dec. 31, 2016 |
| A Company | $25,000 | $13,000 | $20,000 |
| B Company | $13,000 | $20,000 | $20,000 |
| C Company | $35,000 | $30,000 | $25,000 |
| Available for Sale Securities: | |||
| Company | Cost | Value, Dec. 31, 2015 | Value, Dec. 31, 2016 |
| X Company | $210,000 | $130,000 | $50,000 |
| Y Company | $50,000 | $60,000 | $70,000 |
Required: (1.) Prepare the necessary journal entries for FKG on December 31, 2015, and December 31, 2016. (2.) What net effect would the valuation of these stock investments have on 2015 net income? On 2016 net income?
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New Auditors Guide To Internal Auditing
Authors: Bruce R. Turner
1st Edition
1634540549, 978-1634540544
