In its balance sheet at January 1, 20x6, Lewis Corp. reported:

FVPL securities: $560,000

On December 31, 20x5, Lewis had recognized an unrealized loss of $40,000 on the FVPL securities. During 20x6, Lewis sold securities that cost $130,000 for $180,000 cash. Lewis also purchased additional securities at a cost of $100,000. At December 31, 20x6, the entire remaining portfolio had a market value of $614,000.

Required:

a. Journalize all transactions and adjustments that Lewis Company made during 20x6 in relation to the securities .

To record sale of FVPL securities:

To record purchase of FVPL securities:

To make year-end adjustment (making to market):

b. How will the transactions and adjustments related to the securities affect Lewis 20x6 net income?

c. How will the securities be presented on Lewis December 31, 20x6 balance set?