1. On the companys 1/1/20 balance, ABC Company reported the following balances:

		Debit	Credit
Current Assets:
	Investments in Debt Securities - Trading	56,000
	Investments in Debt Securities - AfS	50,000
Non-current Assets:
	Investments in Equity Securities - AfS	100,000
	Equity Method Investment	250,000
Accumulated Other Comprehensive Income (AOCI)			5,000
	AfS = Available for Sale

• The debt investments were purchased at par.
• The Equity Method Investment represents an ownership interest of 32% which is deemed by management to provide the company with significant influence over the operations of the investee.

Investments classified as Trading

1. On 1/4/20 the company sold for $63,000 the securities that were classified as trading.
2. On 12/26/20, the company purchased securities for $60,000. Management classified this investment as trading.
3. At 12/31/20, the trading securities fair value was estimated to be $52,000.

Available for Sale (AfS)

4. On 3/15/20, the company sold for $55,0000 all of the securities classified as Available for Sale (AfS).
5. On 6/20/20, the company purchased investments for $40,000 that the company classified as AfS.
6. At 12/31/20, the AfS investments have a fair value of $34,0000 at year-end. The decline in value is credit-related.

Equity Securities

7. On 7/20/20, the sold for $50,000 equity securities carried at $45,000 on the beginning balance sheet.
8. No additional equity securities were purchased or sold during the year.
9. On 12/31/20, the equity securities fair value was estimated to be $63,000.

Equity Method Investment

10. During the year equity method investee declares and pays cash dividends of $50,000.
11. The equity method investee reports a net loss of $100,000 for the calendar year ended 12/31/20.

12. The fair value of the equity method investment at 12/31/20 was estimated to be $325,000.

Using the attached T-account template:

• document the beginning balances, labeling the balances B
• prepare the journal entries, as necessary, labeling the entries, a b etc

  No. 1

  ASSETS =				LIABILITIES		+ EQUITY
  	Non-current Assets
  Current Assets	Property, Plant & Equipment	Investments	Intangible Assets/Other	Current Liabilities	Non-Current Liabilities	Contributed Capital	Earned Capital	Accumulated OCI