Homework Answers
3a) Compute fair value adjustment
| Available for sale securities | Cost | Fair value | Unrealized amount |
| Nintendo Co notes | 44450 | 48900 | 4450 |
| Atlantic Bonds | 49000 | 47000 | -2000 |
| Kelogg Co notes | 25000 | 23200 | -1800 |
| Mcdonals Corp bonds | 46300 | 44800 | -1500 |
| Total | 164750 | 163900 | -850 |
3b) Adjusting entry
| Date | account and explanation | Debit | Credit |
| Unrealized holding loss-AFS | 850 | ||
| Fair value adjustment | 850 | ||
| (To record adjusting entry) |
4) Journal entry
| Date | General Journal | Debit | Credit |
| Mar 22 | Investment in shares | 10000 | |
| Cash | 10000 | ||
| July 1 | cash (1000*1) | 1000 | |
| Dividend revenue | 1000 | ||
| Oct 8 | Cash (50*15) | 750 | |
| Gain on sale of investment | 250 | ||
| Investment in shares (50*10) | 500 |
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Exercise 15-5 Fair value adjustment to available-for-sale debt securities LO P3 On December 31,...
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Prepare journal entries to record the following transactions involving the short-term stock investments of Duke Co.,...
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Stoll Co.'s long-term available-for-sale portfolio at December 31, 2016, consists of the following Stoll Co....
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exercise 15-5 please
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exercise 15-5 please
on December 31, Lujack Co. held the following short-term available-for-sale securities. Lujack had no short-term investments prior to the current period. Prepare the December 31 year-end adjusting entry to racord the fair value adjustment for these debt securities. Exercise 15-5 Fair value adjustment to available-for-sale debt securities Available-for-Sale Securities Nintendo Co. notes......... Atlantic bonds........ Kellogg Co. notes ............ McDonald's Corp, bonds. Cost $44,450 49,000 25,000 46,300 Fair Value $48,900 47.000 23,200 44,800 in aynilahlr-for-sale debt Exercise 15-6
Exercise 15-10 Multiyear fair value adjustments to available-for-sale securities LO P3 TIcker Services began operations in 2015 and maintains long-term Investments in avalilable-for-sale securities. The year-end cost and fair values for its portfolio of these investments follow rtfolio of Available-for-Sale Securitien December 31, 2015 December 31, 2016 December 31, 2017 December 31, 2018 Cost Fair Value 352,060 $341,49 401,340 45,833 824,208 425, 429 645,720 733,545 Prepare journal entries to record each year-end fair value adjustment for these securities We were...
4 Required Informatlion Problem 15-2A Recording,.adjusting, and reporting short-term available-for-sale securities LO P3 The following information applies to the questions displayed below Part 1 of 3 Rose Company had no short term investments prior to year 2017 It had the following transections involving short-term points Apr. 16 Purchased 4,eee shares of Gen Co. stock at $24.25 per share plus a $188 brokerage fee Nay apaid s1ee,en to buy 3-sonth u.s. Treasury bills (debt securities): s1e9,eee principle anount, et interest, Duly...
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