Skyline, Inc., purchased a portfolio of trading securities during the current fiscal year. The cost and fair value of this portfolio on December $31$ were as follows:

Issuing Company Total Cost Total Fair Value

Alcon, Inc. $$16,000$ $$15,000$

Easton Company $23,00021,500$

Panther Company $9,0009,200$

Total $$48,000$ $$45,700$

Required:

Question Content Area

a$.$ Journalize the adjusting entry for the fair value of the trading securities on December $31.$ If an amount box does not require an entry, leave it blank.

Dec. $31$

Question Content Area

b$.$ Where will the information from the journal entry be reported on the financial statements?

The

will be reported on the income statement. The

will reduce the value of the portfolio on the balance sheet.