Question

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 Value Adjustment-AFS (LT) Required balance in Fair Value Adjustment-AFS (LT) Adjustment required to Fair Value Adjustment-AFS (LT) 12/31/16 Existing balance in Fair Value Adjustment-AFS (LT) Required balance in Fair Value Adjustment-AFS (LT) Adjustment required to Fair Value Adjustment-AFS (LT) 12/31/17 Existing balance in Fair Value Adjustment-AFS (LT) Required balance in Fair Value Adjustment-AFS (LT) Adjustment required to Fair Value Adjustment-AFS (LT) 12/31/18 Existing balance in Fair Value Adjustment-AFS (LT) Required balance in Fair Value Adjustment-AFS (LT) Adjustment required to Fair Value Adjustment-AFS (LT)

Prepare journal entries to record each year-end fair value adjustment for these securities. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer 1

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Date	Account	Debit	Credit
Dec 31 2015	Unrealized Loss-Equity	$             10,424
	Fair Vlaue Adjustmnet - AFS LT		$           10,424
	(to record adjustment to fair value for AFS)
Dec 31 2016	Fair Vlaue Adjustmnet - AFS LT	$             34,190
	Unrealized Loss-Equity		$           10,424
	Unrealized Gain-Equity		$           23,766
	(to record adjustment to fair value for AFS)
Dec 31 2017	Fair Vlaue Adjustmnet - AFS LT	$             74,816
	Unrealized Gain-Equity		$           74,816
	(to record adjustment to fair value for AFS)
Dec 31 2018	Unrealized Loss-Equity	$             89,478
	Unrealized Gain-Equity	$             98,582
	Fair Vlaue Adjustmnet - AFS LT		$         188,060
	(to record adjustment to fair value for AFS)
Calculation
12/31/15	Existing balance in Fair Value Adjustment-AFS (LT)
	Required balance in Fair Value Adjustment-AFS (LT)	347460-337036	$           10,424	Loss
	Adjustment required to Fair Value Adjustment-AFS (LT)		$           10,424
12/31/16	Existing balance in Fair Value Adjustment-AFS (LT)		$           10,424	Loss
	Required balance in Fair Value Adjustment-AFS (LT)	419870-396104	$           23,766	Gain
	Adjustment required to Fair Value Adjustment-AFS (LT)		$           34,190	Gain
12/31/17	Existing balance in Fair Value Adjustment-AFS (LT)		$           23,766	Gain
	Required balance in Fair Value Adjustment-AFS (LT)	637283-538701	$           98,582	Gain
	Adjustment required to Fair Value Adjustment-AFS (LT)		$           74,816	Gain
12/31/18	Existing balance in Fair Value Adjustment-AFS (LT)		$           98,582	Gain
	Required balance in Fair Value Adjustment-AFS (LT)	813439-723961	$           89,478	Loss
	Adjustment required to Fair Value Adjustment-AFS (LT)		$         188,060	Gain