Splendid Company purchased equity securities during 2020 tobe held as investments. The cost and market value of theProblem 15-3 (IAA)investments are:ProblAborigstatemDecember 31, 2020CostTrading securitiesSecurities not held for tradingMarket2,000,0003,000,0002,500,0002,900,000December 31, 2021NoncuTrading securitiesSecurities not held for tradingFinancMarke2,000,0003,000,0002,200,000Marke2,300,000The securities not held for trading are measured at fair valunthrough other comprehensive income by irrevocable electionOtherUnresRequired:An &followPrepare journal entries for 2020 and 2021.

Trading securities are the investments made by an entity with an intention to make profits in the…

be held as investments. The cost and market value of the Splendid Company purchased equity securities during 2020 to investments are: Cost Market December 31, 2020 Trading securities Securities not held for trading 2,000,000 3,000,000 2,500,000 2,900,000 December 31, 2021 Trading securities Securities not held for trading 2,000,000 3,000,000 2,200,000 2,300,000 The securities not held for trading are measured at fair value through other comprehensive income by irrevocable election Required: Prepare journal entries for 2020 and 2021.

be held as investments. The cost and market value of the Splendid Company purchased equity securities during 2020 to investments are: Cost Market December 31, 2020 Trading securities Securities not held for trading 2,000,000 3,000,000 2,500,000 2,900,000 December 31, 2021 Trading securities Securities not held for trading 2,000,000 3,000,000 2,200,000 2,300,000 The securities not held for trading are measured at fair value through other comprehensive income by irrevocable election Required: Prepare journal entries for 2020 and 2021.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...

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