The investments of Charger Inc. include a single investment: 14,500 shares of Raiders Inc. common stock purchased

Question:

The investments of Charger Inc. include a single investment: 14,500 shares of Raiders Inc. purchased on February 24, 20Y1, for $38 per share including brokerage commission. These shares were classified as trading securities. As of the December 31, 20Y1, date, the share price had increased to $42 per share.
a. Journalize the entries to acquire the investment on February 24, and record the adjustment to fair value on December 31, 20Y1.
b. How is the unrealized gain or loss for trading investments reported on the financial statements?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...