Record the yearend adjusting entry for the securities portfo

Record the year-end adjusting entry for the securities portfolio as of December 31, 2015.

Record the year-end adjusting entry for the securities portfolio as of December 31, 2016.

Record the year-end adjusting entry for the securities portfolio as of December 31, 2017.?

Record the year-end adjusting entry for the securities portfolio as of December 31, 2018.

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 available-for-sale securities. The year-end cost and fair values for its portfolio of these investments follow Portfolio of Available-for-Sale Securities December 31, 2015 December 31, 2016 December 31, 2017 December 31, 2018 Cost $337,940 $327,802 Fair Value 385,252 523,943 791,154 408,367 619,825 704,127 Prepare journal entries to record each year-end fair value adjustment for these securities

Solution

Journal Entry Date Accounting titles & Explanations Debit Credit 31/12/2015 unrealised loss-Equiyt 10138 Fair value adjusment -AFS(LT) 10,138 (337940-327802) 31/12/2016 Fair value adjusment -AFS(LT) 33,253 unrealized loss -Equity 10,138 unrealized gain - Equity 23115 (408367-385252) 31/12/2017 Fair value adjusment -AFS(LT) 72,767 unrealized gain - Equity 72,767 (619825-523943=$95882) Inet gain $95882-23115) 31/12/2018 unrealized gain - Equity 95,882 unrealized loss -Equity 87,027 Fair value adjusment -AFS(LT) 182,909 (791154-704127)= 87027 net loss