Question
In: Accounting
(TCO B) The following information pertains to Fox Inc.’s portfolio of marketable securities for the Year...
(TCO B) The following information pertains to Fox Inc.’s portfolio of marketable securities for the Year ended Dec 31, Year 1 and Dec 31, Year 2.
| Cost | Fair Value at 12/31 Year 1 | Year 2 Activity: Purchases | Year 2 Activity: Sales | Fair Value at 12/31 Year 2 | |
| Trading Securities | |||||
| Smith Co. | $230,000 | $240,000 | $235,000 | ||
| Jones Co | $290,000 | $275,000 | $285,000 | ||
| Available for Sale Securities | |||||
| Williams's Co. | $270,000 | $245,000 | $255,000 | N/A | |
| Gores Co. | $250,000 | $235,000 | $265,000 | ||
| Held to Maturity Securities | |||||
| Martin Co. | 1,400,00 | $1,250,000 |
Note 1: Fox Inc. uses US GAAP
Note 2: Fox Inc. uses valuation accounts to record changes in the
fair value of its marketable securities
Note 3: The Martin Co. security was purchase at par value
Note 4: The decline in the value of Martin Co. is considered to be
other than temporary
Requirement:
Record the journal entries for the following marketable securities
transactions based on the information given in the table.
- (1) Mark to market journal entry for the Smith Co security at 12/31 Year 1
- (2) Mark to market journal entry for the Williams Co security at 12/31 Year 1
- (3) Mark to market journal entry for the Smith Co security at 12/31 Year 2
- (4) Mark to market journal entry for the Williams Co security at 12/31 Year 2
- (5) Journal entry to record purchase of Martin Co. Investment
- (6) Journal entry to record the impairment of Martin Co. Investment
Solutions
ekkarill92 answered 8 months agoRelated Solutions
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The following information pertains to Lynx Corporation’s
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Cost
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Activity Y2
Fair Value (12/31/Y2)
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•
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