please answer all parts thanks Answer is not complete.Required 2 is question by entering your answers in the tabs below.Required 1No1No1Required 2Prepare 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 answersin millions.)Transaction1Required 3 Required 4Transaction1Fair value adjustmentGain 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 1General JournalGeneral JournalReclassification adjustment (OCI)Fair value adjustmentPrepare 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 accountfield. Enter your answers in millions.)< Required 2Required 3 >Required 4 >DebitDebit1,170530CreditCredit5301,170Answer is not complete.Complete this question by entering your answers in the tabs below.quired 4Required 3Using your journal entries from requirements 2 and 3, adjust your T-account from requirement 1. Have you accounted for theentire change in the fair value adjustment that occurred during 2016? (Enter your answers in millions.)Required 1Dec. 26, 2015Required 2Fair Value Adjustment, AFS Investments•*530✔2.696 141,17003.338Dec. 31, 2016Required 4•< Required 3Required 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 debtFinancial institution instrumentsGovernment debt6,0981,581Marketable equity securities2,818Total available-for-sale investments $14,344AdjustedCost$ 3,847Dec. 26, 2015December 31, 2016GrossUnrealizedGains$Dec. 31, 2016453,363$3,372Answer is not complete.Complete this question by entering your answers in the tabs below.Fair Value Adjustment, AFS Investments2,696 33383,338 33383338XXXGrossUnrealizedLosses$(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 grossrealized 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 $530 for gains that had previouslybeen included in OCI and recorded in the fair value adjustment but which were now being included in net income after being realizedupon sale.Required:1. Prepare a T-account that shows the change between the December 26, 2015, and December 31, 2016, balances for the fair valueadjustment associated with Intel's AFS investments for 2016. By how much did the fair value adjustment change during 2016?2. Prepare a journal entry that records any unrealized holding gains and losses that occurred during 2016. Ignore income taxes.3. Prepare a journal entry that records any reclassification adjustment for available-for-sale investments sold during 2016. Ignoreincome taxes.FairValue$ 3,8376,0921,5736,180$17,682AdjustedCost$ 4,16911,1407483,254$19,3114. Using your journal entries from requirements 2 and 3, adjust your T-account from requirement 1. Have you accounted for the entirechange in the fair value adjustment that occurred during 2016?December 26, 2015GrossGrossUnrealized UnrealizedGainsLosses31Required 1 Required 2 Required 3Required 4Prepare a T-account that shows the change between the December 26, 2015, and December 31, 2016, balances for the fairvalue adjustment associated with Intel's AFS investments for 2016. By how much did the fair value adjustment change during2016? (Enter your answers in millions.)$Required 2 >2,706$ 2,710$ (11)(2)(1)FairValue$ 4,16111,1397475,960$22,007

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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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q