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Fisher Corporation invested $320,000 cash in marketable securities in early December. On December 31, the quoted...

Fisher Corporation invested $320,000 cash in marketable securities in early December. On December 31, the quoted market price for these securities is $337,000. Prepare the journal entry on December 31st.

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Answer #1

The journal entry on December 31st to record the increase in the market price for the security is as follows:-

Particulars Debit Credit
December 31 Marketable Securities A/c ($337,000 - $320,000)                            17,000
              To Unrealized gain on Marketable Securities                           17,000
(To record the unrealized gain as of year end)

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