Question
At December 31, 2014, the available-for-sale securities for Allison, Inc. are as follows. Security Cost Fair Value X $27,500 $24,000 Y 12,500 13,000 Z 23,000
At December 31, 2014, the available-for-sale securities for Allison, Inc. are as follows.
Security Cost Fair Value
X $27,500 $24,000
Y 12,500 13,000
Z 23,000 18,000
$63,000 $55,000
Instructions
(a) Prepare the adjusting entry at December 31, 2014, to report the securities at fair value.
(b) Show the balance sheet and income statement presentation at December 31, 2014, after adjustment to fair value. The securities are considered to be a long-term investment.
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Internal Auditing Assurance And Advisory Services
Authors: Kurt R. Reding, Paul J. Sobel, Urton L. Anderson, Michael J. Head, Sridhar Ramamoorti, Mark Salamasick, Cris Riddle
3rd Edition
0894137409, 978-0894137402
