Valix Finacc vol 1 Problem 9-5

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 9-5

1. Unrealized loss – TS                                                                         60,000

            Trading securities                                                                                             60,000

2. Cash                                                                                            140,000

    Loss on sale of trading securities                                                   20,000

            Trading securities                                                                                            160,000

3. Trading securities (680,000 – 610,000)                                             70,000

            Unrealized gain – TS                                                                                         70,000

                                                                                              Carrying amount           Market

    A  Common (4,000 x 80)                                                              300,000                320,000

    C  Preferred (2,000 x 180)                                                             310,000                360,000

                                                                                                        610,000                680,000