Saved Help Save Exit Submit INVESTMENTS 6 Check my work 10

Saved Help Save & Exit Submit INVESTMENTS 6 Check my work 10 Ticker Services began operations in 2015 and maintains long term investments in available for-sale securities. The yea fair values for its portfolio of these investments follow . The year-end cost and Fair Value $372,000 $360,860 455,80e 700,500 780,280 Cost Portfolio of Available-for-Sale Securities December 31, 2015 December 31, 2016 December 31, 2017 December 31, 2018 6 points 428,508 600,208 876,900 eBook Hint Print Prepare journal entries to record each year-end fair value adjustment for these securities ences Complete this question by entering your answers in the tabs below.

Solution

Cost Fair Value Fair Value Above (Below) Cost 31-Dec-15        372,000.00    360,860.00                 (11,140.00) 31-Dec-16        428,500.00    455,800.00                   27,300.00 31-Dec-17        600,200.00    700,500.00                 100,300.00 31-Dec-18        876,900.00    780,200.00                 (96,700.00) Calculation adjustment required to fair value adjustment: 31-Dec-15 Existing Balance in Fair Value Adjustment-AFS (LT)                       -   Required Balance in Fair Value Adjustment-AFS (LT)     (11,140.00) Adjustment required to Fair Value Adjustment - AFS (LT)     (11,140.00) 31-Dec-16 Existing Balance in Fair Value Adjustment-AFS (LT)     (11,140.00) Required Balance in Fair Value Adjustment-AFS (LT)        27,300.00 Adjustment required to Fair Value Adjustment - AFS (LT)        38,440.00 31-Dec-17 Existing Balance in Fair Value Adjustment-AFS (LT)        27,300.00 Required Balance in Fair Value Adjustment-AFS (LT)     100,300.00 Adjustment required to Fair Value Adjustment - AFS (LT)        73,000.00 31-Dec-18 Existing Balance in Fair Value Adjustment-AFS (LT)     100,300.00 Required Balance in Fair Value Adjustment-AFS (LT)     (96,700.00) Adjustment required to Fair Value Adjustment - AFS (LT) (197,000.00) Journal Entry Date Particulars Dr. Amt. Cr. Amt. 31-Dec-15 Unrealized Holding Gain (Loss) - Equity      11,140.00     Fair Value Adjustment (Available for Sale)          11,140.00 (To record the adjusting entry for Fair Value Adjustment) 31-Dec-16 Fair Value Adjustment (Available for Sale)          38,440.00     Unrealized Holding Gain (Loss) - Equity      38,440.00 (To record the adjusting entry for Fair Value Adjustment) 31-Dec-17 Fair Value Adjustment (Available for Sale)          73,000.00     Unrealized Holding Gain (Loss) - Equity      73,000.00 (To record the adjusting entry for Fair Value Adjustment) 31-Dec-18 Unrealized Holding Gain (Loss) - Equity    197,000.00     Fair Value Adjustment (Available for Sale)        197,000.00 (To record the adjusting entry for Fair Value Adjustment)