Correct journal entry to record sale of equity securities

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Reference no: EM131881395

During 2014, Ball & Brown Co. purchased marketable securities classified under current assets as securities available-for-sale. Ball & Brown closes its books annually on December 31st.

On November 26, 2015, the company recorded the following correct journal entry to record the sale of the equity securities:

Cash 26,000

Realized Loss 7,000

Unrealized Holding Loss (AOCI) 5,000

Marketable Securities 28,000

In the questions below, ignore the effect of taxes.

a) What was the acquisition cost of these securities in 2014?

b) What was the market value of these securities at the end of Year 2014?

c) What is the total amount of securities gain or loss that Ball & Brown Co. reports on the income statement for 2015? (Assume that these are the only securities for Ball & Brown Co.)

Reference no: EM131881395

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