Question
Rison Corporation has the following trading portfolio of stock investments as of December 31, 2008. Security Cost Fair Value A $19,000 $16,000 B 22,000 26,000
Rison Corporation has the following trading portfolio of stock investments as of December 31, 2008.
Security Cost Fair Value
A $19,000 $16,000
B 22,000 26,000
C 34,000 31,000
$75,000 $73,000
On January 22, 2009, Rison Corporation sold security C for $30,000.
Instructions
(a) Prepare the adjusting entry for Rison Corporation on December 31, 2008, to report the portfolio at fair value.
(b) Indicate the balance sheet and income statement presentation of the fair value data for Rison Corporation at December 31, 2008.
(c) Prepare the journal entry for the 2009 sale.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started