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d. If the fair value of the portfolio of securities was $330,000 on December 31, 20Y6, what would be the journal entry to adjust the portfolio to fair value? If an amount box does not require an entry, leave it blank. If no entry is required, select "No Entry Required" and leave the amount boxes blank. 20Y6 Dec. 31 Unrealized Loss on Available-for-Sale Investments Valuation Allowance for Available-for-Sale Investments 7,000 X 7,000 X

d. If the fair value of the portfolio of securities was $330,000 on December 31, 20Y6, what would be the journal entry to adjust the portfolio to fair value? If an amount box does not require an entry, leave it blank. If no entry is required, select "No Entry Required" and leave the amount boxes blank. 20Y6 Dec. 31 Unrealized Loss on Available-for-Sale Investments Valuation Allowance for Available-for-Sale Investments 7,000 X 7,000 X

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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c. If the fair value of the portfolio of securities was $340,000 on December 31, 20Y6, what would be the journal entry to adjust the portfolio to fair value? If an amount box does not require an entry, leave it blank. If no entry is required, select "No Entry Required" and leave the amount boxes blank. 20Y6 Dec. 31 Valuation Allowance for Available-for-Sale Investments Unrealized Gain on Available-for-Sale Investments 20Y6 Dec. 31 Unrealized Loss on Available-for-Sale Investments 3,000 d. If the fair value of the portfolio of securities was $330,000 on December 31, 20Y6, what would be the journal entry to adjust the portfolio to fair value? If an amount box does not require an entry, leave it blank. If no entry is required, select "No Entry Required" and leave the amount boxes blank. Valuation Allowance for Available-for-Sale Investments 3,000 7,000 X 7,000 X
Transcribed Image Text:c. If the fair value of the portfolio of securities was $340,000 on December 31, 20Y6, what would be the journal entry to adjust the portfolio to fair value? If an amount box does not require an entry, leave it blank. If no entry is required, select "No Entry Required" and leave the amount boxes blank. 20Y6 Dec. 31 Valuation Allowance for Available-for-Sale Investments Unrealized Gain on Available-for-Sale Investments 20Y6 Dec. 31 Unrealized Loss on Available-for-Sale Investments 3,000 d. If the fair value of the portfolio of securities was $330,000 on December 31, 20Y6, what would be the journal entry to adjust the portfolio to fair value? If an amount box does not require an entry, leave it blank. If no entry is required, select "No Entry Required" and leave the amount boxes blank. Valuation Allowance for Available-for-Sale Investments 3,000 7,000 X 7,000 X
Fair value adjustment for available-for-sale investments M. Jones Inc. purchased the following available-for-sale securities during 20Y5, its first year of operations: Issuing Company Arden Enterprises Inc. French Broad Industries Inc. Pisgah Construction Inc. Issuing Company Arden Enterprises Inc. French Broad Industries Inc. The fair value of the various available-for-sale securities on December 31, 20Y5, was as follows: Fair Value, Dec. 31, 20Y5 Pisgah Construction Inc. Cost $150,000 66,000 104,000 $320,000 $168,000 72,000 97,000 20Y6 Dec. 31 No Entry Required No Entry Required $337,000 a. Journalize the adjusting entry for the fair value of the portfolio of securities on December 31, 20Y5. If an amount box does not require an entry, leave it blank. If no entry is required, select "No Entry Required" and leave the amount boxes blank. 20Y5 Dec. 31 Valuation Allowance for Available-for-Sale Investments Unrealized Gain on Available-for-Sale Investments 17,000 17,000 b. If the fair value of the portfolio of securities were the same on December 31, 20Y6, what would be the journal entry to adjust the portfolio to fair value? If an amount box does not require an entry, leave it blank. If no entry is required, select "No Entry Required" and leave the amount boxes blank. 31
Transcribed Image Text:Fair value adjustment for available-for-sale investments M. Jones Inc. purchased the following available-for-sale securities during 20Y5, its first year of operations: Issuing Company Arden Enterprises Inc. French Broad Industries Inc. Pisgah Construction Inc. Issuing Company Arden Enterprises Inc. French Broad Industries Inc. The fair value of the various available-for-sale securities on December 31, 20Y5, was as follows: Fair Value, Dec. 31, 20Y5 Pisgah Construction Inc. Cost $150,000 66,000 104,000 $320,000 $168,000 72,000 97,000 20Y6 Dec. 31 No Entry Required No Entry Required $337,000 a. Journalize the adjusting entry for the fair value of the portfolio of securities on December 31, 20Y5. If an amount box does not require an entry, leave it blank. If no entry is required, select "No Entry Required" and leave the amount boxes blank. 20Y5 Dec. 31 Valuation Allowance for Available-for-Sale Investments Unrealized Gain on Available-for-Sale Investments 17,000 17,000 b. If the fair value of the portfolio of securities were the same on December 31, 20Y6, what would be the journal entry to adjust the portfolio to fair value? If an amount box does not require an entry, leave it blank. If no entry is required, select "No Entry Required" and leave the amount boxes blank. 31
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