Please explain requirement 1 no one in detail each step with the amount explanation. explain requirement 3.
Before its acquisition by Royal Dutch Shell, Pennzoil Company held a portfolio of trading equity securities that cost $660,100,000 and had a market value of $955,182,000 on January 1. Assume that the same portfolio was held until the end of the first quarter of the year. The market value of the portfolio was $980, 160,000 at January 31, $940,000,000 at February 29, and $960,000,000 at March 31. Requirements 1. Prepare a tabulation showing the balance sheet presentation and income statement presentation for monthly reporting purposes. 2. Show the journal entries for January, February, and March. 3. How would your answer to requirement 1 change if the securities were classified as available-for-sale? Requirement 1. Prepare a tabulation showing the balance sheet presentation and income statement presentation for monthly reporting purposes. (Use a minus sign or parentheses for a loss. Leave any unused lines blank.) End of Period January February March Balance Sheet Presentation: Income Statement Presentation: Requirement 2. Show the journal entries for January, February, and March. (Record debits first, then credits. Explanations are not required.) Begin with the journal entry for January Date Accounts Debit Credit Jan 31 Choose from any list or enter any number in the input fields and then continue to the next question. Before its acquisition by Royal Dutch Shell, Pennzoil Company held a portfolio of trading equity securities that cost $660,100,000 and had a market value of $955, 182,000 on January 1. Assume that the same portfolio was held until the end of the first quarter of the year. The market value of the portfolio was $980, 160,000 at January 31, $940,000,000 at February 29, and $960,000,000 at March 31. Requirements 1. Prepare a tabulation showing the balance sheet presentation and income statement presentation for monthly reporting purposes. 2. Show the journal entries for January, February, and March. 3. How would your answer to requirement 1 change if the securities were classified as available-for-sale? Requirement 2. Show the journal entries for January, February, and March. (Record debits first, then credits. Explanations are not required.) Begin with the journal entry for January Date Accounts Debit Credit Jan 31 Next, show the journal entry for February Date Accounts Debit Credit Feb 28 Choose from any list or enter any number in the input fields and then continue to the next question. Requirement 3. How would your answer to requirement 1 change if the securities were classified as availabl-for-sale? O A. The balance sheet would show the securities at market value and the change in market value would be added to a separate stockholders' equity account and included in other comprehensive income. OB. The answer to requirement 1 would not change if the securities were classified as available for sale. O C. The balance sheet would show the securities at cost, and the income statement would report the change in the unrealized gains or losses on the securities. OD. The balance sheet would show the securities at cost, and there would be no amounts shown on the income statement relating to the available for sale securities. Choose from any list or enter any number in the input fields and then continue to the next
