Note 5: Cash and Investments (partial) Available-for-sale investments as of December 31, 2016, and December 26, 2015, were as follows: ($ in millions) Corporate debt Financial institution instruments Government debt Marketable equity securities Total available-for-sale investments Adjusted Cost $ 3,847 6,098 1,581 2,818 $14,344 December 31, 2016 Gross Unrealized Gains 3,363 $3,372 Gross Unrealized Losses $(14) (11) (1) $(34) Fair Value $ 3,837 6,092 1,573 6,180 $17,682 December 26, 2015 Gross Gross Unrealized Losses $ (2) Adjusted Unrealized Cost Gains $4,169 11,140 748 3,254 $19,311 3 1 2,706 $ 2,710 Intel also indicates the following: "During 2016, we sold available-for-sale investments for proceeds of $4.1 billion.... The gross realized gains on sales of available-for-sale investments were $530 million in 2016. Intel's Note 16 (Other Comprehensive Income) indicates unrealized holding gains of $1,170 million during 2016, and a reclassification adjustment of $530 for gains that had previously been included in OCI and recorded in the fair value adjustment but which were now being included in net income after being realized upon sale. Required: 1. Prepare a T-account that shows the change between the December 26, 2015, and December 31, 2016, balances for the fair value adjustment associated with Intel's AFS investments for 2016. By how much did the fair value adjustment change during 2016? 2. Prepare a journal entry that records any unrealized holding gains and losses that occurred during 2016. Ignore income taxes. 3. Prepare a journal entry that records any reclassification adjustment for available-for-sale investments sold during 2016. Ignore income taxes. 4. Using your journal entries from requirements 2 and 3, adjust your T-account from requirement 1. Have you accounted for the entire change in the fair value adjustment that occurred during 2016? (14) Fair Value $ 4,161 11,139 747 5,960 $22,007
Note 5: Cash and Investments (partial) Available-for-sale investments as of December 31, 2016, and December 26, 2015, were as follows: ($ in millions) Corporate debt Financial institution instruments Government debt Marketable equity securities Total available-for-sale investments Adjusted Cost $ 3,847 6,098 1,581 2,818 $14,344 December 31, 2016 Gross Unrealized Gains 3,363 $3,372 Gross Unrealized Losses $(14) (11) (1) $(34) Fair Value $ 3,837 6,092 1,573 6,180 $17,682 December 26, 2015 Gross Gross Unrealized Losses $ (2) Adjusted Unrealized Cost Gains $4,169 11,140 748 3,254 $19,311 3 1 2,706 $ 2,710 Intel also indicates the following: "During 2016, we sold available-for-sale investments for proceeds of $4.1 billion.... The gross realized gains on sales of available-for-sale investments were $530 million in 2016. Intel's Note 16 (Other Comprehensive Income) indicates unrealized holding gains of $1,170 million during 2016, and a reclassification adjustment of $530 for gains that had previously been included in OCI and recorded in the fair value adjustment but which were now being included in net income after being realized upon sale. Required: 1. Prepare a T-account that shows the change between the December 26, 2015, and December 31, 2016, balances for the fair value adjustment associated with Intel's AFS investments for 2016. By how much did the fair value adjustment change during 2016? 2. Prepare a journal entry that records any unrealized holding gains and losses that occurred during 2016. Ignore income taxes. 3. Prepare a journal entry that records any reclassification adjustment for available-for-sale investments sold during 2016. Ignore income taxes. 4. Using your journal entries from requirements 2 and 3, adjust your T-account from requirement 1. Have you accounted for the entire change in the fair value adjustment that occurred during 2016? (14) Fair Value $ 4,161 11,139 747 5,960 $22,007
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
please answer all parts thanks
![Answer is not complete.
Required 2 is question by entering your answers in the tabs below.
Required 1
No
1
No
1
Required 2
Prepare a journal entry that records any unrealized holding gains and losses that occurred during 2016. Ignore income taxes.
(If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers
in millions.)
Transaction
1
Required 3 Required 4
Transaction
1
Fair value adjustment
Gain on investments (unrealized, OCI)
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3 Required 4
< Required 1
General Journal
General Journal
Reclassification adjustment (OCI)
Fair value adjustment
Prepare a journal entry that records any reclassification adjustment for available-for-sale Investments sold during 2016.
Ignore income taxes. (If no entry is required for a transaction/event, select "No journal entry required in the t account
field. Enter your answers in millions.)
< Required 2
Required 3 >
Required 4 >
Debit
Debit
1,170
530
Credit
Credit
530
1,170
Answer is not complete.
Complete this question by entering your answers in the tabs below.
quired 4
Required 3
Using your journal entries from requirements 2 and 3, adjust your T-account from requirement 1. Have you accounted for the
entire change in the fair value adjustment that occurred during 2016? (Enter your answers in millions.)
Required 1
Dec. 26, 2015
Required 2
Fair Value Adjustment, AFS Investments
•
*
530✔
2.696 14
1,170
0
3.338
Dec. 31, 2016
Required 4
•
< Required 3
Required 4 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F716b7632-0e76-4721-a5a8-635ce06d7b4b%2F0e151648-2eb1-4dbf-aaad-b5e988a4a704%2F4it8u7n_processed.png&w=3840&q=75)
Transcribed Image Text:Answer is not complete.
Required 2 is question by entering your answers in the tabs below.
Required 1
No
1
No
1
Required 2
Prepare a journal entry that records any unrealized holding gains and losses that occurred during 2016. Ignore income taxes.
(If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers
in millions.)
Transaction
1
Required 3 Required 4
Transaction
1
Fair value adjustment
Gain on investments (unrealized, OCI)
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3 Required 4
< Required 1
General Journal
General Journal
Reclassification adjustment (OCI)
Fair value adjustment
Prepare a journal entry that records any reclassification adjustment for available-for-sale Investments sold during 2016.
Ignore income taxes. (If no entry is required for a transaction/event, select "No journal entry required in the t account
field. Enter your answers in millions.)
< Required 2
Required 3 >
Required 4 >
Debit
Debit
1,170
530
Credit
Credit
530
1,170
Answer is not complete.
Complete this question by entering your answers in the tabs below.
quired 4
Required 3
Using your journal entries from requirements 2 and 3, adjust your T-account from requirement 1. Have you accounted for the
entire change in the fair value adjustment that occurred during 2016? (Enter your answers in millions.)
Required 1
Dec. 26, 2015
Required 2
Fair Value Adjustment, AFS Investments
•
*
530✔
2.696 14
1,170
0
3.338
Dec. 31, 2016
Required 4
•
< Required 3
Required 4 >
![The following disclosure note appeared in the December 31, 2016, annual report of the Intel Corporation.
Note 5: Cash and Investments (partial)
Available-for-sale investments as of December 31, 2016, and December 26, 2015, were as follows:
($ in millions)
Corporate debt
Financial institution instruments
Government debt
6,098
1,581
Marketable equity securities
2,818
Total available-for-sale investments $14,344
Adjusted
Cost
$ 3,847
Dec. 26, 2015
December 31, 2016
Gross
Unrealized
Gains
$
Dec. 31, 2016
4
5
3,363
$3,372
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Fair Value Adjustment, AFS Investments
2,696 3338
3,338 3338
3338
XXX
Gross
Unrealized
Losses
$(14)
(11)
Required 1
(8)
(1)
$(34)
Intel also indicates the following: "During 2016, we sold available-for-sale investments for proceeds of $4.1 billion.... The gross
realized gains on sales of available-for-sale investments were $530 million in 2016. Intel's Note 16 (Other Comprehensive Income)
indicates unrealized holding gains of $1,170 million during 2016, and a reclassification adjustment of $530 for gains that had previously
been included in OCI and recorded in the fair value adjustment but which were now being included in net income after being realized
upon sale.
Required:
1. Prepare a T-account that shows the change between the December 26, 2015, and December 31, 2016, balances for the fair value
adjustment associated with Intel's AFS investments for 2016. By how much did the fair value adjustment change during 2016?
2. Prepare a journal entry that records any unrealized holding gains and losses that occurred during 2016. Ignore income taxes.
3. Prepare a journal entry that records any reclassification adjustment for available-for-sale investments sold during 2016. Ignore
income taxes.
Fair
Value
$ 3,837
6,092
1,573
6,180
$17,682
Adjusted
Cost
$ 4,169
11,140
748
3,254
$19,311
4. Using your journal entries from requirements 2 and 3, adjust your T-account from requirement 1. Have you accounted for the entire
change in the fair value adjustment that occurred during 2016?
December 26, 2015
Gross
Gross
Unrealized Unrealized
Gains
Losses
3
1
Required 1 Required 2 Required 3
Required 4
Prepare a T-account that shows the change between the December 26, 2015, and December 31, 2016, balances for the fair
value adjustment associated with Intel's AFS investments for 2016. By how much did the fair value adjustment change during
2016? (Enter your answers in millions.)
$
Required 2 >
2,706
$ 2,710
$ (11)
(2)
(1)
Fair
Value
$ 4,161
11,139
747
5,960
$22,007](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F716b7632-0e76-4721-a5a8-635ce06d7b4b%2F0e151648-2eb1-4dbf-aaad-b5e988a4a704%2Ft0x7t7d_processed.png&w=3840&q=75)
Transcribed Image Text:The following disclosure note appeared in the December 31, 2016, annual report of the Intel Corporation.
Note 5: Cash and Investments (partial)
Available-for-sale investments as of December 31, 2016, and December 26, 2015, were as follows:
($ in millions)
Corporate debt
Financial institution instruments
Government debt
6,098
1,581
Marketable equity securities
2,818
Total available-for-sale investments $14,344
Adjusted
Cost
$ 3,847
Dec. 26, 2015
December 31, 2016
Gross
Unrealized
Gains
$
Dec. 31, 2016
4
5
3,363
$3,372
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Fair Value Adjustment, AFS Investments
2,696 3338
3,338 3338
3338
XXX
Gross
Unrealized
Losses
$(14)
(11)
Required 1
(8)
(1)
$(34)
Intel also indicates the following: "During 2016, we sold available-for-sale investments for proceeds of $4.1 billion.... The gross
realized gains on sales of available-for-sale investments were $530 million in 2016. Intel's Note 16 (Other Comprehensive Income)
indicates unrealized holding gains of $1,170 million during 2016, and a reclassification adjustment of $530 for gains that had previously
been included in OCI and recorded in the fair value adjustment but which were now being included in net income after being realized
upon sale.
Required:
1. Prepare a T-account that shows the change between the December 26, 2015, and December 31, 2016, balances for the fair value
adjustment associated with Intel's AFS investments for 2016. By how much did the fair value adjustment change during 2016?
2. Prepare a journal entry that records any unrealized holding gains and losses that occurred during 2016. Ignore income taxes.
3. Prepare a journal entry that records any reclassification adjustment for available-for-sale investments sold during 2016. Ignore
income taxes.
Fair
Value
$ 3,837
6,092
1,573
6,180
$17,682
Adjusted
Cost
$ 4,169
11,140
748
3,254
$19,311
4. Using your journal entries from requirements 2 and 3, adjust your T-account from requirement 1. Have you accounted for the entire
change in the fair value adjustment that occurred during 2016?
December 26, 2015
Gross
Gross
Unrealized Unrealized
Gains
Losses
3
1
Required 1 Required 2 Required 3
Required 4
Prepare a T-account that shows the change between the December 26, 2015, and December 31, 2016, balances for the fair
value adjustment associated with Intel's AFS investments for 2016. By how much did the fair value adjustment change during
2016? (Enter your answers in millions.)
$
Required 2 >
2,706
$ 2,710
$ (11)
(2)
(1)
Fair
Value
$ 4,161
11,139
747
5,960
$22,007
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