Solved: What amounts would be reported in the income statement, Managerial Accounting

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What amounts would be reported in the income statement

Response to the following problem:

Loreal-American Corporation purchased several marketable securities during 2013. At December 31, 2013, the company had the investiments in commom stock listed below. None was held at the last reporting date, December 31, 2012, and all are considered securities available -for- sale .

Cost fair Value Unrealized Holding Gain ( Loss)

Short term:

Blair Inc. $480.000 $405.000 $ ( 75.000)

ANC Corporation 450.000 480.000 30.000

Totals $ 930.000 $885.000 $ ( 45.000 )

Long Term:

Drake Corporation $480.000 $ 560.000 $ 80.000

Aaron Industries 720.000 660.000 ( 60.000 )

Totals $ 1.200.000 $ 1.220.000 $ 20.000

Required:

1- Prepare the apropriate adjusting entry at December 31, 2013.

2- What amounts would be reported in the income statement at December 31, 2013, as a result of the adjusting entry ?

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Managerial Accounting: What amounts would be reported in the income statement

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Managerial Accounting: What amounts would be reported in the income statement

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