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	$	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.

Answer 1

	Portfolio of Available-for-Sale Securities	Cost	Fair Value	Difference
	31-Dec-15	$363,640.00	$352,731.00	$      10,909.00
	31-Dec-16	$414,550.00	$439,423.00	$    (24,873.00)
	31-Dec-17	$563,788.00	$666,961.00	$ (103,173.00)
	31-Dec-18	$851,320.00	$757,675.00	$      93,645.00
12/31/15	Existing balance in Fair Value Adjustment-AFS (LT)	$                   -
	Required balance in Fair Value Adjustment-AFS (LT)	$      10,909.00	Cr.
	Adjustment required to Fair Value Adjustment-AFS (LT)	$      10,909.00	Cr.
12/31/16	Existing balance in Fair Value Adjustment-AFS (LT)	$      10,909.00	Cr.
	Required balance in Fair Value Adjustment-AFS (LT)	$      24,873.00	Dr.
	Adjustment required to Fair Value Adjustment-AFS (LT)	$      35,782.00	Dr.
12/31/17	Existing balance in Fair Value Adjustment-AFS (LT)	$      24,873.00	Dr.
	Required balance in Fair Value Adjustment-AFS (LT)	$    103,173.00	Dr.
	Adjustment required to Fair Value Adjustment-AFS (LT)	$      78,300.00	Dr.
12/31/18	Existing balance in Fair Value Adjustment-AFS (LT)	$    103,173.00	Dr.
	Required balance in Fair Value Adjustment-AFS (LT)	$    757,675.00	Cr.
	Adjustment required to Fair	$          860,848.00	Cr.
		Dr	Cr
31-Dec-15	Unrealized Loss- Equity	$            10,909.00
	Fair Value Adjustment-AFS (LT)		$            10,909.00
31-12-16	Fair Value Adjustment-AFS (LT)	$            35,782.00
	Unrealized Loss- Equity		$            10,909.00
	Unrealized Gain- Equity		$            24,873.00
31-12-17	Fair Value Adjustment-AFS (LT)	$            78,300.00
	Unrealized Gain- Equity		$            78,300.00
31-12-18	Unrealized Loss- Equity	$          757,675.00
	Unrealized Gain- Equity	$          103,173.00
	Fair Value Adjustment-AFS (LT)		$          860,848.00