Question

On December 31, 2018, Sage’s securities portfolio consisted of the following common stocks. Security Quantity Cost Fair Value Lindsay Jones, Inc. 1,000 shares $15,200 $19,800 Lindsay Jones, Inc. 2,000 shares 32,900 40,300 Duff Company 1,000 shares 15,900 12,000 Arnold Aircraft 2,000 shares 72,100 22,100 Totals $136,100 $94,200 During the year 2018, Sage Corp. sold 2,000 shares of Poley Corp. for $38,600 and purchased 2,000 more shares of Lindsay Jones, Inc. and 1,000 shares of Duff Company.

What should be reported on Sage’s December 31, 2018, balance sheet?

What should be reported on Sage’s 2018 income statement?

Answer 1

Security	Quantity	Cost	Fair Value
Lindsay Jones, Inc.	1000	$15,200	$19,800
Lindsay Jones, Inc.	2000	32,900	40,300
Duff company	1000	15,900	12,000
Arnold Aircraft	2000	72100	22100
		$136,100	$94,200
Balance sheet
December 31 2018 Assets
Investments in securities (Fair value)		$94,200
Income statement
December 31 2018 Unrealized Loss on Securities	($41,900)
(136100-94200)
Note for Ploey corporation there would be gain or'
loss from it which needs to be mentioned in Income statement
As the sales parice is given but no cost in the question hence cannot
be calculated
If any doubt please comment