Report the securities at fair value


Problem: At December 31, 2010, the trading securities for Natoli, Inc. are as follows:

Security

Cost

 

Fair Value

A

 

$17,500

 

$16,000

B

 

12,500

 

14,000

C

 

23,000

 

19,000

 

 

$53,000

 

$49,000

1). Prepare the adjusting entry at December 31, 2010, to report the securities at fair value.

2). Show the balance sheet and income statement presentation at December 31, 2010, after an adjustment to fair value.

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Accounting Basics: Report the securities at fair value
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