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Weston Company has these data at December 31, 2017, the end of its first year of operations.

Weston Company has these data at December 31, 2017, the end of its first year of operations.

Securities Cost

Fair Value

Trading$110,000

$122,000

Available‐for‐sale100,000

96,000

The available‐for‐sale securities are held as a long‐term investment.

Instructions

(a) Prepare the adjusting entries to report each class of securities at fair value.

(b) Indicate the statement presentation of each class of securities and the related unrealized gain (loss) accounts.

Top Answer

(a) Fair value adjustment - Trading securities [Debit}           $12,000 .              Unrealized... View the full answer

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