Question
In: Accounting
Terry's Expansion Fund is made up of available for sale (AfS) securities. The securities were purchased...
Terry's Expansion Fund is made up of available for sale (AfS) securities. The securities were purchased on January 1st of last year (2019). At the end of 2019, the CFO made the correct entry to account for the change in value, but no adjustment has yet been made for changes in value in the current year (2020). The table below contains all of the important information about the securities that are part of the expansion fund. Terry’s upper management has elected to report the combined value of the AfS Investment account and the market adjustment account as the 'Expansion Fund' in the balance sheet. Under GAAP, the line item should be called 'Expansion Fund, net'.
Security XYZ
Sampson's Friday Foods Arborium
# of Shares Owned
9,100 5,900 22,800 13,800
Purchase Price
$7.00 $2.70 $2.40 $5.90
End, 2019
$6.10 $2.80 $1.60 $4.50
End, 2020
$9.20 $2.70 $2.00 $4.40
-
Make the appropriate journal entries, if any, to account for the change in value of the expansion fund securities
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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Fair Value Journal Entries, Available-for-Sale Investments
Hurricane Inc. purchased a portfolio of available-for-sale
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Number of Shares
Total Cost
Total Fair Value
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$17,420
$19,340
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700
22,960
25,030
Typhoon Corp.
250
7,500
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$47,880
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securities in 2016, its first year of operations. The cost and fair
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1
Name
Number of Shares
Total Cost
Total Fair Value
2
Tornado Inc.
830.00
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$16,185.00
3
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1,230.00
31,488.00
34,809.00
4
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44,268.00
43,834.00
5
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value of this portfolio on December 31, 2016, was as follows:
1
Name
Number of Shares
Total Cost
Total Fair Value
2
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$12,920.00
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3
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30,988.00
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4
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44,051.00
43,400.00
5
Total
$87,959.00
$92,868.00
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