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On December 1, 2020 Mediterranean Corp. purchased 90-day Treasury note, with a face value of $100,000 for $ 94,000 and classified it as Valued at
On December 1, 2020 Mediterranean Corp. purchased 90-day Treasury note, with a face value of $100,000 for $ 94,000 and classified it as Valued at Fair Value through Other Comprehensive Income. Fair value of the Treasury note on December 31, 2020 was $96,500 and on January 31, 2021 was $99,300.
Required:
a) Prepare necessary journal entries for December 1, 2020 and December 31, 2020.
b) Show the impacts of the journal entries on the partial Balance Sheet as of December 31, 2020 and the Income Statement for 2020.
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