On December 31, 2020 (fiscal year-end) Chair, Inc.'s Trading Security Portfolio has a market value of $110,000. All securities in the portfolio were purchased during 2020, and had a total cost of $105,000. What effect would the change in market value (fair value) have on Chair, Inc.'s financial statements for the year ending December 31, 2020. If there is no effect, simply answer "no effect". Type your answers in the respective text boxes: Income Statement: Balance Sheet: Assume that all facts regarding Chair, Inc.'s investment portfolio are the same as stated above, with the exception that the investments had been classified as Available-for-sale. Identify how the change in market value affected Chair, Inc.'s financial statements for the year ending December 31, 2020. If there is no effect, simply answer "no effect". Type your answers in the respective text boxes: Income Statement: Clouds Corporation began operations in 2018. The year-end cost and fair values for its available-for-sale portfolio are as follows: Record the necessary adjusting journal entries at fiscal year-ends 20182020. Assuming the portfolio is comprised of non-influential equity investments, record the necessary adjusting journal entries at fiscal year-ends 2018- 2020. PROBLEM 3 - PART III Assuming the portfolio is comprised of trading security investments, how would your answer to PART II of this problem been different? Note: Please don't provide your answer via journal entries; provide your answer in a discussion format by typing it in the text box provided On December 31, 2020 (fiscal year-end) Chair, Inc.'s Trading Security Portfolio has a market value of $110,000. All securities in the portfolio were purchased during 2020, and had a total cost of $105,000. What effect would the change in market value (fair value) have on Chair, Inc.'s financial statements for the year ending December 31, 2020. If there is no effect, simply answer "no effect". Type your answers in the respective text boxes: Income Statement: Balance Sheet: Assume that all facts regarding Chair, Inc.'s investment portfolio are the same as stated above, with the exception that the investments had been classified as Available-for-sale. Identify how the change in market value affected Chair, Inc.'s financial statements for the year ending December 31, 2020. If there is no effect, simply answer "no effect". Type your answers in the respective text boxes: Income Statement: Clouds Corporation began operations in 2018. The year-end cost and fair values for its available-for-sale portfolio are as follows: Record the necessary adjusting journal entries at fiscal year-ends 20182020. Assuming the portfolio is comprised of non-influential equity investments, record the necessary adjusting journal entries at fiscal year-ends 2018- 2020. PROBLEM 3 - PART III Assuming the portfolio is comprised of trading security investments, how would your answer to PART II of this problem been different? Note: Please don't provide your answer via journal entries; provide your answer in a discussion format by typing it in the text box provided
