Question
The accounting records of Jamaican Importers, Inc., at January 1, 2018, included the following: Assets: Investment in IBM common shares $ 2,345,000 Less: Fair value
The accounting records of Jamaican Importers, Inc., at January 1, 2018, included the following:
| Assets: | ||||
| Investment in IBM common shares | $ | 2,345,000 | ||
| Less: Fair value adjustment | (245,000 | ) | ||
| $ | 2,100,000 | |||
No changes occurred during 2018 in the investment portfolio. Required: Prepare appropriate adjusting entry(s) at December 31, 2018, assuming the fair value of the IBM common shares was:
1. $1,457,000
2. $2,118,000
3. $2,365,000
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Accounting Principles Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
9th Canadian Edition
978-1119786818, 1119786819
