Answered: Portfollo of Avallable-for-Sale…

Portfollo of Avallable-for-Sale Securitles Cost Falr Value December 31, Year 1 $13,000 $15,000 December 31, Year 2 20,000 25,000 December 31, Year 3 23,000 29,000 December 31, Year 4 16,500 19,000

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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Question

Ticker Services began operations in Year 1 and holds long-term investments in available-for-sale debt
securities. The year-end cost and fair values for its portfolio of these investments follow. Prepare journal
entries to record each year-end fair value adjustment for these securities.

Portfollo of Avallable-for-Sale Securitles
Cost
Falr Value
December 31, Year 1
$13,000
$15,000
December 31, Year 2
20,000
25,000
December 31, Year 3
23,000
29,000
December 31, Year 4
16,500
19,000

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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