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Posted on Aug 07, 2024

2. Complete the following table that summarizes the (a) total cost, (b) total fair value adjustment, and (c) total fair value of the portfolio of

2. Complete the following table that summarizes the (a) total cost, (b) total fair value adjustment, and (c) total fair value of the portfolio of long-term available-for-sale securities at each year-end. (Do not round your intermediate calculations. Loss amounts should be indicated with a minus sign.)

Required information Problem 15-2A Recording, adjusting, and reporting short-term available-for-sale securities LO P3 The following information applies to the questions displayed below.j Rose Company had no short-term investments prior to year 2017. It had the following transactions involving short-term investments in available-for-sale securities during 2017 Apr. 16 Purchased 8,000 shares of Gem Co. stock at $29.75 per share plus a $400 brokerage fee May 1 Paid $300,000 to buy 3-month U.S. Treasury bills (debt securities): $300,000 principal amount, 3% July 7 Purchased 4,000 shares of PepsiCo stock at $50.00 per share plus a $370 brokerage fee Aug. 1Received a check for principal and accrued interest on the U.s. Treasury bills that matured on July interest, securities mature on July 31 20 Purchased 2,000 shares of Xerox stock at $19.00 per share plus a $450 brokerage fee 31. 15 Received an $.90 per share cash dividend on the Gem Co. stock 28 Sold 4,000 shares of Gem Co. stock at $36.50 per share less a $490 brokerage fee Oct. 1 Received a 1.90 per share cash dividend on the PepsiCo shares Dec. 15 Received a $1.05 per share cash dividend on the remaining Gem Co shares 31 Received a 1.15 per share cash dividend on the Pepaico shares Apr 16, 2017 Short-term investments-AFS (Gem) Cash 2May 01, 2017 Short-term investments-AFS (T-bills) Cash 3 Jul 07, 2017 Short-term investments-AFS (Pepsi) Cash Jul 20, 2017 Short-term investments-AFS (Xerox) Cash Aug 01, 2017 Cash Short-term investments-AFS (T-bills) Interest revenue 6 Aug 15, 2017 Cash Dividend revenue 7 Aug 28, 2017 Cash Short-term investments AFS (Gem) Gain on sale of short-term investments Oct 01, 2017 Cash Dividend revenue Dec 15, 2017 Cash Dividend revenue 10Dec 31, 2017 Cash Dividend revenue 3. Prepare an adjusting entry, if necessary, to record the year-end fair value adjustment for the portfolio of short-term investments in available-for-sale securities. (If no entry is required for a transaction/event, select "No journal entry required" in the first account Held) View transaction list View journal entry worksheet No Date General Journal Debit Credit Dec 31, 2017 Unrealized loss- Equity Fair value adjustment AFS (ST) No Date General Journal Debit Credit 1 Apr 15, 2018 Cash Gain on sale of investments Long-term investments -AFSJ&J) 2 2Jul 05, 2018 Cash Loss on sale of investments Long-term investments-AFS (Mattel) 3Jul 22, 2018 Long-term investments-AFS (Sara Lee) Cash 4Aug 19, 2018 Long-term investments-AFS (Eastman Kodak) Cash 5 Dec 31, 2018 Unrealized loss-Equity Fair value adjustment AFS (LT) No Date General Journal Debit Credit 1Feb 27, 2019 Long-term investments-AFS (Microsoft) Cash Jun 21, 2019 Cash Gain on sale of investments 3Jun 30, 2019 Long-term investments-AFS (Black&Decker) Cash 4Aug 03, 2019Cash Loss on sale of investments Long-term investments AFS (Sara Lee 5Nov 01, 2019 Cash Gain on sale of investments 6Dec 31, 2019 Fair value adjustment-AFS (LT) Unrealized loss-Equity Unrealized gain--Equity Fair Value Adjustment Computation-AFS Long-term portfolio Number of Share Price at 12/31/17Fair Value $22.60 $39.10 $32.00 Unrealized Gain (Loss) December 31, 2017 Cost Johnson & Johnson Sony Mattel Total Number of Shares Share Price Unrealized Gain (Loss) December 31, 2018 Kodak Sara Lee Sony Total at 12/31/18 Fair Value $ 20.35 $ 21.10 $36.10 Cost Number of Shares Share Price Unrealized Gain (Loss) at 12/31/19 Fair Value $40.10 $70.10 December 31, 2019 Cost Black & Decker Microsoft Total Balance Sheet Presentation: Long-Term AFS Securities (Cost) Fair Value Adjustment Long-Term AFS Securities (Fair Value) 0 2017 2018 2019 0 Problem 15-3A Part 3 3. Complete the following table that summarizes (a) the realized gains and losses and (b) the unrealized gains or losses for the portfolio of long-term available-for-sale securities at each year-end. (Do not round your intermediate calculations. Losses should be indicated by a minus sign. 2017 2018 2019 Sale of Johnson & Johnson shares Sale of Mattel shares Sale of Sara Lee shares Sale of Sony shares Sale of Eastman Kodak shares Realized Gains (Losses) 2017 2018 2019 Balance in the Fair Value Adjustment AFS account Beginning of year Debit (Credit) Required balance- End of year Debit (Credit) Required adjustment Unrealized Gain (Loss) Required information Problem 15-2A Recording, adjusting, and reporting short-term available-for-sale securities LO P3 The following information applies to the questions displayed below.j Rose Company had no short-term investments prior to year 2017. It had the following transactions involving short-term investments in available-for-sale securities during 2017 Apr. 16 Purchased 8,000 shares of Gem Co. stock at $29.75 per share plus a $400 brokerage fee May 1 Paid $300,000 to buy 3-month U.S. Treasury bills (debt securities): $300,000 principal amount, 3% July 7 Purchased 4,000 shares of PepsiCo stock at $50.00 per share plus a $370 brokerage fee Aug. 1Received a check for principal and accrued interest on the U.s. Treasury bills that matured on July interest, securities mature on July 31 20 Purchased 2,000 shares of Xerox stock at $19.00 per share plus a $450 brokerage fee 31. 15 Received an $.90 per share cash dividend on the Gem Co. stock 28 Sold 4,000 shares of Gem Co. stock at $36.50 per share less a $490 brokerage fee Oct. 1 Received a 1.90 per share cash dividend on the PepsiCo shares Dec. 15 Received a $1.05 per share cash dividend on the remaining Gem Co shares 31 Received a 1.15 per share cash dividend on the Pepaico shares Apr 16, 2017 Short-term investments-AFS (Gem) Cash 2May 01, 2017 Short-term investments-AFS (T-bills) Cash 3 Jul 07, 2017 Short-term investments-AFS (Pepsi) Cash Jul 20, 2017 Short-term investments-AFS (Xerox) Cash Aug 01, 2017 Cash Short-term investments-AFS (T-bills) Interest revenue 6 Aug 15, 2017 Cash Dividend revenue 7 Aug 28, 2017 Cash Short-term investments AFS (Gem) Gain on sale of short-term investments Oct 01, 2017 Cash Dividend revenue Dec 15, 2017 Cash Dividend revenue 10Dec 31, 2017 Cash Dividend revenue 3. Prepare an adjusting entry, if necessary, to record the year-end fair value adjustment for the portfolio of short-term investments in available-for-sale securities. (If no entry is required for a transaction/event, select "No journal entry required" in the first account Held) View transaction list View journal entry worksheet No Date General Journal Debit Credit Dec 31, 2017 Unrealized loss- Equity Fair value adjustment AFS (ST) No Date General Journal Debit Credit 1 Apr 15, 2018 Cash Gain on sale of investments Long-term investments -AFSJ&J) 2 2Jul 05, 2018 Cash Loss on sale of investments Long-term investments-AFS (Mattel) 3Jul 22, 2018 Long-term investments-AFS (Sara Lee) Cash 4Aug 19, 2018 Long-term investments-AFS (Eastman Kodak) Cash 5 Dec 31, 2018 Unrealized loss-Equity Fair value adjustment AFS (LT) No Date General Journal Debit Credit 1Feb 27, 2019 Long-term investments-AFS (Microsoft) Cash Jun 21, 2019 Cash Gain on sale of investments 3Jun 30, 2019 Long-term investments-AFS (Black&Decker) Cash 4Aug 03, 2019Cash Loss on sale of investments Long-term investments AFS (Sara Lee 5Nov 01, 2019 Cash Gain on sale of investments 6Dec 31, 2019 Fair value adjustment-AFS (LT) Unrealized loss-Equity Unrealized gain--Equity Fair Value Adjustment Computation-AFS Long-term portfolio Number of Share Price at 12/31/17Fair Value $22.60 $39.10 $32.00 Unrealized Gain (Loss) December 31, 2017 Cost Johnson & Johnson Sony Mattel Total Number of Shares Share Price Unrealized Gain (Loss) December 31, 2018 Kodak Sara Lee Sony Total at 12/31/18 Fair Value $ 20.35 $ 21.10 $36.10 Cost Number of Shares Share Price Unrealized Gain (Loss) at 12/31/19 Fair Value $40.10 $70.10 December 31, 2019 Cost Black & Decker Microsoft Total Balance Sheet Presentation: Long-Term AFS Securities (Cost) Fair Value Adjustment Long-Term AFS Securities (Fair Value) 0 2017 2018 2019 0 Problem 15-3A Part 3 3. Complete the following table that summarizes (a) the realized gains and losses and (b) the unrealized gains or losses for the portfolio of long-term available-for-sale securities at each year-end. (Do not round your intermediate calculations. Losses should be indicated by a minus sign. 2017 2018 2019 Sale of Johnson & Johnson shares Sale of Mattel shares Sale of Sara Lee shares Sale of Sony shares Sale of Eastman Kodak shares Realized Gains (Losses) 2017 2018 2019 Balance in the Fair Value Adjustment AFS account Beginning of year Debit (Credit) Required balance- End of year Debit (Credit) Required adjustment Unrealized Gain (Loss)