Exercise 1611 At December 31 2017 the availableforsale secur

Exercise 16-11 At December 31, 2017, the available-for-sale securities for Storrer, Inc. are as follows. The securities are considered to be a long-term investment. Cost Fair Value $17,400 $15,700 14,300 Security 12,200 2,600 18,900 $52,200 $48,900

Solution

PART 1

date

Accounts titles and explanation

debit

credit

Dec 31

Unrealized gain or loss- equity

3300

Fair value adjustment – available –for-sale

3300

(52200-48900 = 3300)

PART 2

Balance (partial)

Investments

Investments in stock of less than 20% owned companies, at fair value                    48900

Stockholders’ equity

Less: unrealized loss on available –for-sale securities                                      (3300)

date	Accounts titles and explanation	debit	credit
Dec 31	Unrealized gain or loss- equity	3300
	Fair value adjustment – available –for-sale		3300