The investments of Commerce Bank Inc. include 12,000 shares of RadTek Inc. common stock purchased on February

Question:

The investments of Commerce Bank Inc. include 12,000 shares of RadTek Inc. purchased on February 21, 2010, for $16 per share. These shares were classified as trading securities. As of the December 31, 2010, date, assume that the share price increased to $21 per share. As of the December 31, 2011, date, assume that the share price declined to $20 per share. The investment was held through
December 31, 2011.
(a) Journalize the entries to record the adjustment of the RadTek Inc. investment to fair value on December 31, 2010, and December 31, 2011.
(b) Where is the unrealized gain or unrealized loss for trading investments disclosed 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...