Question

Chec Problem 15-3A Recording, adjusting, and reporting long-term available-for-sale securities LO P3 [The following information applies to the questions displayed below) Grass Security, which began operations in 2017, invests in long-term available-for-sale securities. Following is a series of transactions and events determining its long-term investment activity 2017 Jan. 20 Purchased 1,300 shares of Johnson & Johnson at $20.80 per share plus a $278 commission. Feb. 9 Purchased 1,580 shares of Sony at $46.5e per share plus a $255 commission. une 12 Purchased 1,800 shares of Mattel at $27.3 per share plus a $225 commission. Dec. 31 Per share fair values for stocks in the portfolio are Johnson&Johnson, $21.80; Mattel, $31.28; and Sony, $38.30. 2018 Apr. 15 sold 1,300 shares of Johnson & Johnson at $23.8e per share less a $555 commission. July 5 Sold 1,800 shares of Mattel at $24.20 per share less a $265 commission. July 22 Purchased 900 shares of Sara Lee at $22.80 per share plus a $510 c ssion. Aug. 19 Purchased 1,209 shares of Eastman Kodak at s17.30 per share plus a $228 commission. Dec. 31 Per share fair values for stocks in the portfolio are: Kodak, s 5 19.55; Sara Lee, $20.30; and Sony, $35.30. 2019 eb. 27 Purchased 2,700 shares of Microsoft at $67.30 per share plus a $555 commission. June 21 Sold 1,500 shares of Sony at $48.30 per share less a(n) $918 comission June 30 Purchased 1,700 shares of Black & Decker at $36.30 per share plus a $465 comission. Aug. 3 Sold 900 shares of Sara Lee at $16.55 per share less a $465 commission. Nov. 1 Sold 1,280 shares of Eastman Kodak at $23.05 per share less a(n) $655 commission Dec. 31 Per share fair values for stocks in the portfolio are: Black & Decker, $39.30; and Microsoft, $69.30. 8 roblem 15-3A Part 3 Prey 10 of 10 Next

Answer 1

Grass Security, which began operations in 2017
Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to Part 1 2017 Ja. 20 Long-Term Investments-AFS (J&J) 527,310 S27,310 Cash Purchased Johnson & Johnson shares 1,300 x $20.80) +$270] Feb. 9 Long-Term Investments-AFS (Sony) 5 70,005 Cash $ 70,005 Purchased Sony shares (1,500 x $46.50)+$255] Jun. 12 Long-Term Investments-AFS (Mattel) 49,365 Cash Purchased Mattel shares 49,365 [(1,800 x 527.30) 225] Dec. 31 Unrealized Loss-Equity 4,730 $ 4,730 Fair Value Adjustment-AFS LT)* Annual adjustment to fair values. Fair Value Fair value Adj Cost $27,310 $ 28,340 $70,005 $ 57,450 549,365 $ 56,160 Sony Mattel Total 146,680 $ 141,950 4,730 2018 Apr. 15 Cash $30,385 Gain on Sale of Investments $3,075 $27,310 Long-Term Investments-AFS (J&J) Sold Johnson & Johnson shares (1,300 x $23.80) $555 Jul 5 Cash Loss on Sale of Investments 543,295 6,070 Long-Term Investments-AFS (Mattel) Sold Mattel shares [(1,800 x $24.20) $265] 49,365 Jul 22 Long-Term Investments-AFS (Sara Lee $21,030 Cash 21,030 Purchased Sara Lee shares [(900 x $22.80) $510] Aug. 19 Long-Term Investments AFS (Eastman Kodak 20,988 Cash Purchased Eastman Kodak shares $ 20,988 [(1200 x $17.30)$228] Dec. 31 Unrealized Loss-Equity 512,613 $12,613 Fair Value Adjustment AFS (LTI Annual adjustment to fair values. Cost Fair Value Fari Value adj Kadak Sara Lee Sony Total 20,988 23,460 $21,030 $ 18,270 5 $ 112,023 $ 94,680$ 17,343 19.55 20.30 35.30 70,005 $ 52,950 Fair Value Adjustment account: Required balance Unadjusted balance Required change $ 17,343 Credit $-4,730 Credit $ 12,613

2019 Feb. 27 Long-Term Investments-AFS (Microsoft) 182,265 Cash 5 182,265 Purchased Microsoft shares [(2,700 x $67.30)+$555] Jun 21 Cash $71,540 Gain on Sale of Investments 1,535 70,005 Long-Term Investments-AFS(Sony) Sold Sony shares [1,500x $48.30) $910] Jun 30 Long-Term Investments-AFS (Black & Decke) 62,175 Cash 62,175 Purchased Black & Decker shares (1,700 x $36.30)+$465] Aug. 3 Cash 14,430 $6,600 Loss on Sale of Investments Long-Term Investments-AFS (Sara Lee) 5 21,030 Sold Sara Lee shares (900 x $16.55) $465] Nov. 1 Cash $27,005 6,017 20,988 Gain on Sale of Investments Long-Term Investments-AFS (E. Kodak) Sold Eastman Kodak shares (1200 x $23.05) $655] Dec. 31 Fair Value Adjustment-AFs(LT)" $26,823 Unrealized Loss-Equity Unrealized Gain-Equity $ 17,343 $9,480 Annual adjustment to fair values. Cost Fair Value Black & Decker Microsoft Total 62,175 66,810 $182,265 $ 187,110 253,920 244,440 9,480 Fair Value Adjustment account: Required balance Unadjusted balance Required change 5-9,480 Debit 17,343 Credit $-26,823 Debit Part 2 12/31/2017 12/31/2018 12/31/2019 Long-Term AFS Securities (cost) Fair Value Adjustment Long-Term AFS Securities (fair value) $146,680 $112,023 $ 244,440 9,480 94,680$ 253,920 $4,730 $ -17,343$ 141,950 Part 3 2017 2018 2019 Realized gains (losses) 3,075 $6,070 Sale of Johnson & Johnson shares Sale of Mattel shares Sale of Sara Lee shares Sale of Sony shares Sale of Eastman Kodak shares 6,600 1,535 6,017 952 Total realized gain (loss) -$2,995 $ Unrealized gains (losses) at year-end $4,730$-17,343$ 9,480 Equals the balance of the Fair Value Adjustment account.
, invests in long-term available-for-sale securities. Following is a series of transactions and events determining its long-term investment activity.