Investment in Marketable Securities on January 3, 2011, Matthew Corporation purchased the following equily securities

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Investment in Marketable Securities on January 3, 2011, Matthew Corporation purchased the following equily securities ac an investment. The securities and Company Number of Costot Share Total Cost A NO $ 16,000 2.000 12 24.00 C 000 22 000 On December 31, 20x1, the market values per te were Comany Marlotta 22 B 12 20 Prepare anyjournal entry or entries necessary to record these changes in market value HTML wei

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.If fair value of equity changes during a periode, the unrealized gain or loss will record in income statement as unrealized gain or loss.investment account will increase or decrease with corresponding to fair value Book value of investment A(800 shares @20)=16,000 Fair value of investment=Number of sharesA * Market value of A per share=800 * 22=17,600 Increase or decrease in value of investment= Fair value of investment-Book value of investment A=17,600 -16,000=1,600 increase Debit Credit Investment A 1600 Unrealised gain 1,600 Market value and cost of invstment B is same No journal entries needed.No gain or loss and change in value of investment Value of investment C is decreased cost of investment =22 per share market value per share=20 Cuurent book value or cost of investment C(400 shares @ 22)=8,800 Number of shares=400 Current market value of investment C= Market value of 1 share * Number of shares=400 *20=8,000 Gain or loss from investment C=Current market value of investment C- cost of investment C= 8,000- 8,800= 800 loss Debit Credit Investment C 800 Unrealised loss 800

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Investment in Marketable Securities on January 3, 2011, Matthew Corporation purchased the following equily securities ac an investment

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