Question
In: Accounting
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.
Solutions
Expert Solution
| Date | General Journal | Debit | Credit |
| Dec. 31, 2016 | Unrealised loss - Income [$73 - $53] | $20 | |
| Fair value adjustment - Trading (ST) | $20 | ||
| Dec. 31, 2017 | Fair value adjustment - Trading (ST) | $42 | |
| Unrealised gain - Income [($82- $60) + $20] | $42 | ||
| Dec. 31, 2018 | Fair value adjustment - Trading (ST) | $5 | |
| Unrealised gain - Income [($105 - $78) - $22] | $5 | ||
| Dec. 31, 2019 | Unrealised loss - Income [($92 - $73) + 27] | $46 | |
| Fair value adjustment - Trading (ST) | $46 |
ekkarill92 answered 11 months agoRelated Solutions
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...
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...
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
$
363,640
$
352,731
December 31,
2016
414,550
439,423
December 31,
2017
563,788
666,961
December 31,
2018
851,320
757,675
Prepare journal entries to record each year-end fair value
adjustment for these securities.
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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
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Stock Investment Transactions, Trading Securities Zeus Investments Inc. is a regional investment company that began operations...
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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.
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$44 per share plus a brokerage commission of $580.
Apr. 1.
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uncollectible. Accounts receivable were $150,000 on December 31,
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