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Question
Skyline, Inc., purchased a portfolio of trading securities during the current fiscal year. The cost and fair value of this portfolio on December 31 were as follows:
| Issuing Company | Total Cost | Total Fair Value | |
| Alcon, Inc. | $16,000 | $15,000 | |
| Easton Company | | 23,000 | 21,500 |
| Panther Company | | 9,000 | 9,200 |
| Total | $48,000 | $45,700 |
a. Journalize the adjusting entry for the fair value of the trading securities on December 31.
b. Where will the information from the journal entry be reported on the financial statements?
Answer
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