Following Are Data for the Trading Securities Held by Lindy

question 3

Essay

Following are data for the trading securities held by Lindy Company as of December 31:
​ $\begin{array}{|l|c|c|c|c|c|}\hline\text { Name } & \begin{array}{c}\text { Number of } \\\text { Shares }\end{array} & \begin{array}{c}\text { Cost } \\\text { per Share }\end{array} & \begin{array}{c}\text { Fair Value } \\\text { per Share }\end{array} & \text { Total Cost } & \text { total Fair Value } \\\hline \text { Laurie, Inc. } & 1,200 & \$ 15.00 & \$ 15.40 \\\hline \text { Scott Corp. } & 800 & 8.00 & 8.25 \\\hline \text { Stephanie Company } & 700 & 14.40 & 13.50 \\\hline \text { Timmer Company } & 900 & 12.35 & 10.77 \\\hline \text { Total } & & & \\\hline\end{array}$ ​
(a) Complete the table above to find the total cost and fair value for the company's trading securities portfolio.
(b) Calculate and record the required December 31 adjustment.
(c) Explain how the adjustment from step (b) is reported on Lindy's financial statements.

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Definitions:

Common Bile Duct

A tube that carries bile from the liver and gallbladder into the duodenum, the first part of the small intestine.

Gallbladder

A small organ located beneath the liver that stores and concentrates bile, aiding in the digestion of fats.

Pancreas

An organ in the body that produces insulin and enzymes important for digestion.

Oral Cavity

The mouth's internal space, including the lips, gums, teeth, tongue, palate, and the opening to the throat, integral for speech, breathing, and the initial stages of digestion.