Question

Problem 12-2A (Part Level Submission) In January 2015, the management of Kinzie Company concludes that it has sufficient cash to permit some short-term investments in debt and stock securities. During the year, the following transactions occurred. Feb. 1 Purchased 600 shares of Muninger common stock for $31,200 Mar. 1 Purchased 810 shares of Tatman common stock for $21,870. Apr. 1 Purchased 50 $1,100, 8% Yoakem bonds for $55,000. Interest is payable semiannually on April 1 and October 1 July 1 Received a cash dividend of $0.60 per share on the Muninger common stock Aug.1 Sold 180 shares of Muninger common stock at $61 per share. Sept. 1 Received a $1 per share cash dividend on the Tatman common stock. Oct. 1 Received the semiannual interest on the Yoakem bonds Oct. 1 Sold the Yoakem bonds for $54,000. At December 31, the fair value of the Muninger common stock was $53 per share. The fair value of the Tatman common stock was $26 per share ▼ (b) Your answer is partially correct. Try again. Prepare the adjusting entry at December 31, 2016, to show the securities at fair value. The stock should be classified as available-for-sale securities. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 Tunrealized holding gain or 3694 | | to fair value adjustmen 3694 to fair value ad ustment SHOW LIST OF ACCOUNTS LINK TO TEXT VIDEOs SIMILAR PROBLEM Attempts: 1 of 5 used SAVE FOR LATER SUBMIT ANSW

Answer 1

Date	Accounts title	Dr	Cr
31 Dec	Unrealized gain or loss - expense	3694
	Fair value adjuadjust - Available for sale securities		3694
	[Being decline on value of investment as available for sale recorded]