Valix Finacc vol 1 Problem 9-12

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 9-12

01/01/2008       Trading securities                                                       2,000,000

                        AFS securities                                                              4,000,000

                               Cash                                                                                           6,000,000

12/31/2008       Trading securities                                                         500,000

                               Unrealized gain – TS                                                                      500,000

12/31/2008       Unrealized loss – AFS                                                    700,000

                               AFS securities                                                                                 700,000

 

12/31/2009       Trading securities                                                         200,000

                               Unrealized gain - TS                                                                       200,000

                        Impairment loss – AFS                                                  700,000

                               Unrealized loss – AFS                                                                     700,000

12/31/2010       Unrealized loss – TS                                                       600,000

                               Trading securities                                                                          600,000

                        AFS securities                                                                900,000

                              Unrealized gain – AFS (4,200,000 – 3,300,000)                                 900,000