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accounting problem on investments

Chaplain Company was very active in acquiring and selling investments in equity securities. Data regarding the securities are:

December 31, 2020                                 COST              MARKETVALUE

Trading Securities                                5,000,000             4,600,000

Securities not held for trading                   3,000,000           3,100,000


December 31, 2021

Trading Securities                                       5,000,000         5,500,000

Securities not held for trading                    3,000,000         3,300,000

   

The entity made an irrevocable election to present changes in the fair value of the securities not held for trading in other comprehensive income.

1. How much is the unrealized gain/loss in trading recognized in P2020? (400,000)

2. How much is the unrealized gain/loss to be recognized in P2021? 500,000

Prepare the journal entries to recognized the changes in market value for 2020 and 2021.

3. Entry in 2020

 

4. Entry in 2021




Can someone help me write the entries?

college   business   accounting   investment   
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Answer #1

Dear student , please refer to the question https://www.homeworklib.com/question/1661025/investments 

answered by: Rehottne
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