Question
In: Accounting
Kitty Company began operations in the current year and acquired short-term debt investments in trading securities.
Kitty Company began operations in the current year and acquired short-term debt investments in trading securities. The year-end cost and fair values for its portfolio of these debt investments follow.
| Portfolio of Trading Securities | Cost | Fair Value | ||||||||
| Tesla Bonds | $ | 12,900 | $ | 9,675 | ||||||
| Nike Bonds | 21,200 | 22,260 | ||||||||
| Ford Bonds | 5,300 | 4,240 | ||||||||
Prepare journal entry to record the December 31 year-end fair value adjustment for the debt securities.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Kitty Company began operations in 2016 and maintains short-term investments in trading securities. The year-end cost...
Kitty Company began operations in 2016 and maintains short-term
investments in trading securities. The year-end cost and fair
values for its portfolio of these investments follow.
Portfolio of Trading
Securities
Cost
Fair Value
December 31,
2016
$
73
$
53
December 31, 2017
60
82
December 31, 2018
78
105
December 31, 2019
92
73
Prepare journal entries to record each December 31 year-end fair
value adjustment for these above securities.
Stock Investment Transactions, Trading Securities Zeus Investments Inc. is a regional investment company that began operations...
Stock Investment Transactions, Trading Securities
Zeus Investments Inc. is a regional investment company that
began operations on January 1, Year 1. The following transactions
relate to trading securities acquired by Zeus Investments Inc.,
which has a fiscal year ending on December 31:
Year 1
Feb. 14.
Purchased 3,100 shares of Apollo Inc. as a trading security at
$30 per share plus a brokerage commission of $620.
Apr. 1.
Purchased 1,500 shares of Ares Inc. as a trading security at
$12...
Stock Investment Transactions, Trading Securities Zeus Investments Inc. is a regional investment company that began operations...
Stock Investment Transactions, Trading Securities
Zeus Investments Inc. is a regional investment company that
began operations on January 1, Year 1. The following transactions
relate to trading securities acquired by Zeus Investments Inc.,
which has a fiscal year ending on December 31:
Year 1
Feb. 14.
Purchased 3,000 shares of Apollo Inc. as a trading security at
$31 per share plus a brokerage commission of $600.
Apr. 1.
Purchased 1,400 shares of Ares Inc. as a trading security at
$12...
Stock Investment Transactions, Trading Securities Zeus Investments Inc. is a regional investment company that began operations...
Stock Investment Transactions, Trading Securities
Zeus Investments Inc. is a regional investment company that
began operations on January 1, Year 1. The following transactions
relate to trading securities acquired by Zeus Investments Inc.,
which has a fiscal year ending on December 31:
Year 1
Feb. 14.
Purchased 3,600 shares of Apollo Inc. as a trading security at
$29 per share plus a brokerage commission of $720.
Apr. 1.
Purchased 1,700 shares of Ares Inc. as a trading security at
$12...
Stock Investment Transactions, Trading Securities Zeus Investments Inc. is a regional investment company that began operations...
Stock Investment Transactions, Trading Securities
Zeus Investments Inc. is a regional investment company that
began operations on January 1, Year 1. The following transactions
relate to trading securities acquired by Zeus Investments Inc.,
which has a fiscal year ending on December 31:
Year 1
Feb. 14.
Purchased 2,900 shares of Apollo Inc. as a trading security at
$44 per share plus a brokerage commission of $580.
Apr. 1.
Purchased 1,400 shares of Ares Inc. as a trading security at
$18...
Mead Inc. began operations in Year 1, following is a series of transactions and events involving its long-term debt investments in available-for-sale securities.
Mead Inc. began operations in Year 1, following is a series of transactions and events involving its long-term debt investments in available-for-sale securities.
Year 1
Jan.
20
Purchased Johnson & Johnson bonds for $29,500.
Feb.
9
Purchased notes of Sony for $63,540.
June
12
Purchased bonds of Mattel for $49,500.
Dec.
31
Fair values for debt in the portfolio are Johnson & Johnson, $32,300; Sony, $55,750; and Mattel, $57,850.
Year 2...
Mead Inc. began operations in Year 1, following is a series of transactions and events involving its long-term debt investments in available-for-sale securities.
Mead Inc. began operations in Year 1, following is a series of transactions and events involving its long-term debt investments in available-for-sale securities.Year 1
Jan.
20
Purchased Johnson & Johnson bonds for $26,000.
Feb.
9
Purchased notes of Sony for $60,390.
June
12
Purchased bonds of Mattel for $46,000.
Dec.
31
Fair values for debt in the portfolio are Johnson & Johnson, $30,100; Sony, $49,650; and Mattel, $54,850.
Year 2
Apr....
Ticker Services began operations in 2015 and maintains long-term investments in available-for-sale securities. The year-end cost...
Ticker Services began operations in 2015 and maintains long-term
investments in available-for-sale securities. The year-end cost and
fair values for its portfolio of these investments follow.
Portfolio of Available-for-Sale
Securities
Cost
Fair Value
December 31,
2015
$
378,870
$
367,504
December 31, 2016
431,912
457,827
December 31, 2017
587,400
694,894
December 31, 2018
886,974
789,407
Prepare journal entries to record each year-end fair value
adjustment for these securities.
Complete this question by entering your answers in the
tabs below.
Calculation...
Ticker Services began operations in 2015 and maintains long-term investments in available-for-sale securities. The year-end cost...
Ticker Services began operations in 2015 and maintains long-term
investments in available-for-sale securities. The year-end cost and
fair values for its portfolio of these investments
follow.
Portfolio of Available-for-Sale
Securities
Cost
Fair Value
December 31,
2015
$
369,060
$
357,988
December 31, 2016
420,728
445,972
December 31, 2017
572,190
676,901
December 31, 2018
864,007
768,966
Prepare journal entries to record each year-end fair value
adjustment for these securities.
Calculation adjustment required to fair value adjustment.
12/31/15
Existing
balance in Fair...
Ticker Services began operations in 2015 and maintains long-term investments in available-for-sale securities. The year-end cost...
Ticker Services began operations in 2015 and maintains long-term
investments in available-for-sale securities. The year-end cost and
fair values for its portfolio of these investments
follow.
Portfolio of Available-for-Sale Securities
Cost
Fair Value
December 31, 2015
$
347,460
$
337,036
December 31, 2016
396,104
419,870
December 31, 2017
538,701
637,283
December 31, 2018
813,439
723,961
Prepare journal entries to record each year-end fair value
adjustment for these securities.
Calculation adjustment required to fair value adjustment.
12/31/15
Existing balance in Fair...
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