Question
Loreal-American Corporation purchased several marketable securities during 2016. At December 31, 2016, the company had the investments in common stock listed below. None was held
| Loreal-American Corporation purchased several marketable securities during 2016. At December 31, 2016, the company had the investments in common stock listed below. None was held at the last reporting date, December 31, 2015, and all are considered securities available-for-sale. |
| Cost | Fair Value | Unrealized Holding Gain (Loss) | |||||||
| Short term: | |||||||||
| Blair, Inc. | $ | 518,000 | $ | 386,000 | $ | (132,000 | ) | ||
| ANC Corporation | 469,000 | 518,000 | 49,000 | ||||||
| Totals | $ | 987,000 | $ | 904,000 | $ | (83,000 | ) | ||
| Long term: | |||||||||
| Drake Corporation | $ | 518,000 | $ | 579,000 | $ | 61,000 | |||
| Aaron Industries | 701,000 | 679,000 | (22,000 | ) | |||||
| Totals | $ | 1,219,000 | $ | 1,258,000 | $ | 39,000 | |||
| Required: Prepare the appropriate adjusting entry at December 31, 2016. What amounts would be reported in the income statement at December 31, 2016, as a result of the adjusting entry? | |||||||||
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Knowledge Based System For Information System Audit
Authors: Amol B. Devale, R. V. Kulkarni
1st Edition
6200652376, 978-6200652379
