Cash 12000 Stock investment 12000 Declt Stock Chego StudyGui

Cash 12000 Stock investment 12000 Declt Stock Chego StudyGuided Solutions and Sut Weygandt, Accounting Principles, 12e Principles of Accounting 12e (AC Gradebook ORION Downloadable eTextbook ment Exercise 16-12 Uttinger Company has the following data at December 31, 2017 Securities Cost Fair Value 120,000 $126,000 Available-for-sale 100,000 ,000 The available-for-sale securities are held as a long-term investment Your answer is correct. Prepare the adjusting entries to report: (1) Trading securities at fair value and (2) Available-for-sale secunities a tair value. (Credit account btles are automatically indented when amount is entered. Do not indent manually-anno onty a required ,nietwo miyia armm min antenn·hrs .nomt) No. Account Tities and Explanation 4 3

Solution

Answer a. Journal Entry Date Particulars Dr. Amt. Cr. Amt. a. Fair Value Adjustment - Trading        6,000.00 Unrealized Gain - Income    6,000.00 b. Unrealized Gain or Loss Equity        4,000.00    Fair Value Adjustment - Available for Sale    4,000.00 Answer b. Uttinger Company Balance Sheet (Partial) Dec 31, 2017 Current Assets Trading Securities    126,000.00 Long term Investment Available for Sale Securities      96,000.00 Stockholders\' Equity Retained Earnings XXX Less: Unrealized Loss on Availabe for Sale      (4,000.00) Uttinger Company Income Statement (Detailed) For the Year Ended Dec 31, 2017 Other Income Unrealized Gain - Trading Securities        6,000.00