s Smith Co.'s long-term available-for-sale portfolio at the start of this year consists of the following. Available for Sale Securities Company A bonds Cost $ 576,530 163,300 Fair Value $ 498,150 Company B notes Company C bonds 159,750 641,750 723,930 Smith enters into the following transactions involving its available-for-sale debt securities this year. January 29 July 6 November 13 Sold one-half of the notes of Company B for $80,940. Purchased bonds of Company X for $126,800. Purchased notes of Company 2 for $210,000. December 9 Sold all of the bonds of Company A for $564,999. Fair values at December 31 are: B, $83,300; C.$646,000; X, $119,000; and Z. $217,000. Fair Value Adjustment Prepare journal entries to record each of the transactions and events. Prepare the year end adjustment to fair value, Requirement General Journal View transaction list < Journal entry worksheet General Ledger 3 Trial Balance Note: Enter debits before credits. 5 Transaction Analysis Using the information on the Fair Value Adjustment tab, prepare the adjusting entry required, if any, for the portfolio of available-for-sale securities.

s Smith Co.'s long-term available-for-sale portfolio at the start of this year consists of the following. Available for Sale Securities Company A bonds Cost $ 576,530 163,300 Fair Value $ 498,150 Company B notes Company C bonds 159,750 641,750 723,930 Smith enters into the following transactions involving its available-for-sale debt securities this year. January 29 July 6 November 13 Sold one-half of the notes of Company B for $80,940. Purchased bonds of Company X for $126,800. Purchased notes of Company 2 for $210,000. December 9 Sold all of the bonds of Company A for $564,999. Fair values at December 31 are: B, $83,300; C.$646,000; X, $119,000; and Z. $217,000. Fair Value Adjustment Prepare journal entries to record each of the transactions and events. Prepare the year end adjustment to fair value, Requirement General Journal View transaction list < Journal entry worksheet General Ledger 3 Trial Balance Note: Enter debits before credits. 5 Transaction Analysis Using the information on the Fair Value Adjustment tab, prepare the adjusting entry required, if any, for the portfolio of available-for-sale securities.

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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