Exercise 15-13 Classifying investments in securities; recording fair values LO C1, P2, P3, P4, P5 The following information shows Carperk Company's Individual investments in securities during its current year, along with the December 31 fair values a. Investment in Brava Company bonds $363,800 cost, $395,451 fair value Carper intends to hold these bonds until they mature in 5 years b. Investment in Baybridge common stock: 29,500 shares; $289,221 cost, $314,383 fair value Carperk owns 32% of Baybridge's voting stock and has a significant influence over Baybridge c. Investment in Duffa bonds. $149,158 cost, 5160,792 fair value. This investment is not readily marketable and is not classified as held- to-maturity or trading d. Investment in Newton notes $82,946 cost, $81.536 fair value Newton notes are not readily marketable and are not classified as held-to-maturity or trading e. Investment in Farmers common stock. 16,300 shares: $90.950 cost: $96,589 falf value. This stock is marketable, and Carperk intends to sell it within the year. This stock Investment results in Carperk having an insignificant influence over Farmers. Required: 1. Identity whether each investment should be classified as a short-term or long-term investment. For each investment indicate in which of the six investment classifications it should be placed 2. Prepare a journal entry dated December 31 to record the fair value adjustment for the portfolio of available for sale debt securities Carpeik had no available for-sale debt securities prior to this year Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a journal entry dated December 31 to record the fair value adjustment for the portfolio of available-for-sale debt securities. Carperk had no available for sale debt securities prior to this year. View transaction at Journal entry worksheet 1 Record the fair value adjustment for the portfolio of available for sale debt willy way UCILI Uyurvy c. Investment in Duffa bonds $149,158 cost $160,792 fair value This Investment is not readily marketable and is not classified as held to-maturity or trading d. Investment in Newton notes: $82,946 cost, $81,536 fair value Newton notes are not readily marketable and are not classified as held-to-maturity or trading e. Investment in Farmers common stock 16,300 shares, $90,950 cost $96,589 fair value. This stock is marketable, and Carperk intends to sell it within the year. This stock investment results in Carperk having an insignificant influence over Farmers Required: 1. Identity whether each investment should be classified as a short-term or long-term investment. For each investment, indicate in which of the six investment classifications it should be placed. 2. Prepare a journal entry dated December 31 to record the fair value adjustment for the portfolio of available for sale debt securities Carperk had no available-for-sale debt securities prior to this year Complete this question by entering your answers in the tabs below. Required 1 Required 2 Identity whether each investment should be dassified as a short-term or long-term investment. For each investment, indicate in which of the six investment dassifications it should be placed Type of investment Classification of Long-term Investment net C Required 2 > 2. Prepare a journai erity udleu December si lecom veld value ajusuten or the purun di dve-O-Saie veut secutive Carpetk had no available for sale debt securities prior to this year Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a Journal entry dated December 31 to record the fair value adjustment for the portfolio of available-for-sale debt securities. Carperk had no available for sale debt securities prior to this year. View transaction list Journal entry worksheet Record the fair value adjustment for the portfolio of available for sale debt securities. Carperk had no available for sale debt securities prior to this year. Hote: Enter debits before credita. General Journal Debit Credit Dec 31 cody Corey View General Journal
