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E17-6B (Entries for Available-for-Sale and Trading Securities) The following information is available for Quigley Company at December 31, 2014, regarding its investments. Securities Cost Fair Value 500 shares of Runner Corporation common stock $ 25,000 $

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E17-6B (Entries for Available-for-Sale and Trading Securities) The following information is available for Quigley Company at December 31, 2014, regarding its investments.;Securities Cost Fair Value;500 shares of Runner Corporation common stock $ 25,000 $ 40,000;7,000 shares of Sher-tor Corporation preferred stock 650,000 620,000;$675,000 $660,000;The company did not have any investments prior to 2014.;Instructions;(a) Prepare the adjusting entry (if any) for 2014, assuming the securities are classified as trading.;(b) Prepare the adjusting entry (if any) for 2014, assuming the securities are classified as available-forsale.;(c) Discuss how the amounts reported in the financial statements are affected by the entries in (a) and;(b).

 

Paper#78463 | Written in 18-Jul-2015

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