Accounting

Due in 12 hour. No Plagiarism. 

One page written portion. 

 Include      the Excel spreadsheet with computations. 

 Follow      the APA format only. 

Question #1:

Below are two unrelated cases involving marketable equity securities. Explain how the information provided affects the classification, carrying value, and income reported for that company's investment securities.

1. The      balance sheet of a company does not classify assets and liabilities as      current and noncurrent. The portfolio of available-for-sale equity      securities includes securities normally considered current that have a net      cost in excess of market value of $2,000. The remainder of the portfolio has      a net market value in excess of cost of $5,000.
2. A      company's noncurrent portfolio of marketable equity securities consists of      the common stock of one company. At the end of the prior year, the market      value of the security was 50% of original cost, and this effect was      properly reflected in a Valuation Adjustment account. However, at the end      of the current year, the market value of the security had appreciated to      twice the original cost. The security is still considered noncurrent at      year-end.