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During 2012 Spelling Inc purchased the following trading securities SecurityFair Value Dec 31 2012 Bizarre Corp common

During 2012, Spelling Inc. purchased the following trading securities: Security .................................................. Cost ............... Fair Value, Dec. 31, 2012 Bizarre Corp. common ................................. $31,000 ................... $ 33,000 8% U.S. Treasury notes ................................... 16,000 ....................... 9,000 PhalCo bonds ............................................. 22,000 ........................ 25,000 At the beginning of 2012, Spelling had a zero balance in Market Adjustment-Trading Securities. 1. What entry would be made at year-end, assuming the preceding values? 2. What entry would be made during 2013, assuming one-half of the Bizarre Corp. common stock is sold for $17,000? 3. Give the entry that would be made at the end of 2013, assuming the following situations: (a) The fair value of remaining securities is $50,000. (b) The fair value of remaining securities is $52,500. (c) The fair value of remaining securities is $56,000.

Jun 16 2020 View more View Less

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