Question

Exercise 16-10 a-b (Part Level Submission) (Video) At December 31, 2020, the trading securities for Cullumber, Inc. are as follows. Security Cost Fair Value A $17,900 $15,600 B 12,600 14,300 C 23,100 18,900 $53,600 $48,800

(a) Your answer is correct. Prepare the adjusting entry at December 31, 2020, to report the securities at fair value. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 SHOW LIST OF ACCOUNTS SHOW ANSWER LINK TO TEXT Attempts: 2 of 3 used

(b) Show the balance sheet and income statement presentation at December 31, 2020, after adjustment to fair value. Cullumber, Inc. Balance Sheet (Partial) For the Year Ended December 31, 2020December 31, 2020For the Quarter Ended December 31, 2020 Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentDebt Investments, at fair valueStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity     Current Assets    Current Liabilities    Intangible Assets    Long-term Investments    Long-term Liabilities    Property, Plant and Equipment    Debt Investments, at fair value    Stockholders' Equity    Total Assets    Total Current Assets    Total Current Liabilities    Total Intangible Assets    Total Liabilities    Total Liabilities and Stockholders' Equity    Total Long-term Investments    Total Long-term Liabilities    Total Property, Plant and Equipment    Total Stockholders' Equity     $ Cullumber, Inc. Income Statement (Partial) December 31, 2020For the Quarter Ended December 31, 2020For the Year Ended December 31, 2020 DividendsExpensesGross Profit / (Loss)Income Before Income TaxesIncome From OperationsNet Income / (Loss)Net SalesRetained Earnings, January 1Retained Earnings, December 31Sales RevenuesTotal ExpensesTotal Operating ExpensesTotal RevenuesOperating ExpensesOther Expenses and LossesOther Revenues and GainsUnrealized Loss on Trading Securities     Dividends    Expenses    Gross Profit / (Loss)    Income Before Income Taxes    Income From Operations    Net Income / (Loss)    Net Sales    Retained Earnings, January 1    Retained Earnings, December 31    Sales Revenues    Total Expenses    Total Operating Expenses    Total Revenues    Operating Expenses    Other Expenses and Losses    Other Revenues and Gains    Unrealized Loss on Trading Securities     $

Answer 1

a) (53,600-48,800)

Unrealized gain or loss	4,800
To Fair value adjustement -trading A/C		4,800

b)

Balance sheet

Particular	Amount
Current assets
Short term investment at fair value	48,800

Income statement

Particular	Amount
Other expense and income
Unrealized loss on trading security	4,800

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