Question one: Watany Co. has the following portfolio of investment securities of 30 November, 2018, its last reporting date: Trading securities Cost-$ Fair values SOU, Inc. ordinary (16,000 shares) 320,000 300,000 RAT, Inc. preference (6,500 shares) 117,000 140,000 18 WMA Co. ordinary (1,000 shares) 90,000 99,000 90 Total 527,000 539,000 On December 10, 2018, the SOU shares were sold at a price of $24 per share In addition, 5,000 shares of DAV ordinary shares were acquired at $25 per share on December 18, 2018. The December 31, 2018, fair values were: RAT S106,000, DAV $132,000 and WMA ordinary $83,000. All the securities are classified as trading. In additions the company received dividend from RAT S20,000 when its net income was 100,000. Required: 1-Prepare the journal entries to record the sale, purchase and adjusting entries related to the trading securities in December2018 under cost/fair market method. 2- Assuming the company interest in RAT Company is 20%, use equity method to journalize the transaction relate to investment in RAT

Question one: Watany Co. has the following portfolio of investment securities of 30 November, 2018, its last reporting date: Trading securities Cost-$ Fair values SOU, Inc. ordinary (16,000 shares) 320,000 300,000 RAT, Inc. preference (6,500 shares) 117,000 140,000 18 WMA Co. ordinary (1,000 shares) 90,000 99,000 90 Total 527,000 539,000 On December 10, 2018, the SOU shares were sold at a price of $24 per share In addition, 5,000 shares of DAV ordinary shares were acquired at $25 per share on December 18, 2018. The December 31, 2018, fair values were: RAT S106,000, DAV $132,000 and WMA ordinary $83,000. All the securities are classified as trading. In additions the company received dividend from RAT S20,000 when its net income was 100,000. Required: 1-Prepare the journal entries to record the sale, purchase and adjusting entries related to the trading securities in December2018 under cost/fair market method. 2- Assuming the company interest in RAT Company is 20%, use equity method to journalize the transaction relate to investment in RAT