Question

Ticker Services began operations in Year 1 and holds long-term investments in available for sale debt securities. The vear-end cost and fair values for its portfolio of these investments follow. Portfolio of Available for Sale Securities December 31, Year 1 December 31, Year 2 December 31, Year 3 December 31, Year 4 Cost $12,600 18,20€ 21,300 16,389 Fair Value $16,209 27,480 32,eee 21,700 Prepare journal entries to record each year-end fair value adjustment for these securities View transaction list Journal entry worksheet 2 3 4 Record the year-end adjustment to fair value, if any, as of Decemb Note: Enter debits before credits Date General Journal Dec. 31, Year 11 < Prey 4 of 7 Next >

Answer 1

Solution NO Date General Journal Debit I Gredit Decal. Year 1 fals value adjustment 3600 - AFS 3600 2 Dec 31 year 2 5600 AFS 5600 Unrealized gain - & Equity [16200-12600] fair value adjustments as Urrealezed gain-equity [C27400-18200)-3600] fair value adjustment- - AFS (LT) [32000 - 21300) - [ 27400 - 18200) unrealized gain - equity 1500 3 Dec 31 Year 3 1500 5300 4 Dec 31 yay 4 5300 I enrealized loss-equity I fair value adjustment- AFS (LT) (21700 - 16300]- [32000 - 21300)