At December 31, 2017, Williams had the following portfolio of trading securities:

Cost Market Value

Jacob Co. bonds $30 $32

Nathan Co. bonds 90 84

Required:

a. Assuming any gain or loss is considered to be temporary, prepare the adjusting entry at December 31, 2017, required under current GAAP.

b. Assuming that, in 2018, Williams sold the Nathan Co. bonds for $83, prepare the entry to record the sale.

c. Assuming that at the end of 2018 the portfolio of trading securities is composed of the following holdings, prepare any necessary entry.

Cost Market Value

Jacob Co. bonds $30 $32

Eric Co. bonds 84 59

d. Assuming that at the end of 2019 the portfolio of trading securities is composed of the following holdings, prepare any necessary entry.

Market Value

Jacob Co. bonds $45

Eric Co. bonds 63

e. Assuming that, in 2020, the Jacob Co. bonds were reclassified as held-to-maturity when the market value was $34, prepare any necessary entry.