Santos Corporation Has the Following Trading Portfolio of Stock Investments

question 8

Essay

Santos Corporation has the following trading portfolio of stock investments as of December 31, 2013. $\begin{array}{rrr} \text { Security }& \text { Cost } & \text { Fair Value } \\\mathrm{A} & \$ 17,000 & \$ 16,000 \\\mathrm{~B} & 23,000 & 25,000 \\\mathrm{C} & 32,000 & 28,000\\&\$72,000&\$69,000\end{array}$ On January 22, 2014, Santos Corporation sold security C for $30,000.
Instructions
(a) Prepare the adjusting entry for Santos Corporation on December 31, 2013 to report the portfolio at fair value.
(b) Indicate the balance sheet and income statement presentation of the fair value data for the Santos Corporation at December 31, 2013.
(c) Prepare the journal entry for the 2014 sale.

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Definitions:

Evolution

The process by which different kinds of living organisms are thought to have developed and diversified from earlier forms during the history of the earth.

Chordate Features

Distinctive characteristics of the Chordata phylum, including a notochord, a dorsal hollow nerve cord, pharyngeal slits, and a post-anal tail, at some stage of development.

Amnion

Extraembryonic membrane of birds, reptiles, and mammals that forms an enclosing, fluid-filled sac.

Dogfish Shark

The dogfish shark is a type of small to medium-sized shark belonging to the family Squalidae, often found in both deep and shallow waters.