Journal entries for available-for-sale securities

M. Jones Inc. purchased the following available-for-sale securities during 20Y5, its first year of operations:

Issuing Company	Cost
Arden Enterprises Inc.	$63,860
French Broad Industries Inc.	18,480
Pisgah Construction Inc.	9,600
Total	$91,940

The fair value of the various available-for-sale securities on December 31, 20Y5, was as follows:

	Fair Value
Issuing Company	Dec. 31, 20Y5
Arden Enterprises Inc.	$80,600
French Broad Industries Inc.	19,800
Pisgah Construction Inc.	9,000
	$109,400

Question Content Area

a. Journalize the adjusting entry for the fair value of the portfolio of securities on December 31, 20Y5. If no entry is required, select "no entry required" and leave the amount box blank. If an amount box does not require an entry, leave it blank.

20Y5 Dec. 31	Trading InvestmentsUnrealized Gain on Available-for-Sale InvestmentsUnrealized Loss on Available-for-Sale InvestmentsValuation Allowance for Available-for-Sale InvestmentsNo entry required	- Select -	- Select -
	Trading InvestmentsUnrealized Gain on Available-for-Sale InvestmentsUnrealized Loss on Available-for-Sale InvestmentsValuation Allowance for Available-for-Sale InvestmentsNo entry required	- Select -	- Select -

Question Content Area

b. If the fair value of the portfolio of securities were the same on December 31, 20Y6, what would be the journal entry to adjust the portfolio to fair value? If no entry is required, select "no entry required" and leave the amount box blank. If an amount box does not require an entry, leave it blank.

20Y6 Dec. 31	CashTrading InvestmentsUnrealized Gain on Available-for-Sale InvestmentsUnrealized Loss on Available-for-Sale InvestmentsNo entry required	- Select -	- Select -
	CashTrading InvestmentsUnrealized Gain on Available-for-Sale InvestmentsUnrealized Loss on Available-for-Sale InvestmentsNo entry required	- Select -	- Select -

Question Content Area

c. If the fair value of the portfolio of securities was $112,400 on December 31, 20Y6, what would be the journal entry to adjust the portfolio to fair value? If no entry is required, select "no entry required" and leave the amount box blank. If an amount box does not require an entry, leave it blank.

20Y6 Dec. 31	Trading InvestmentsUnrealized Gain on Available-for-Sale InvestmentsUnrealized Loss on Available-for-Sale InvestmentsValuation Allowance for Available-for-Sale InvestmentsNo entry required	- Select -	- Select -
	Trading InvestmentsUnrealized Gain on Available-for-Sale InvestmentsUnrealized Loss on Available-for-Sale InvestmentsValuation Allowance for Available-for-Sale InvestmentsNo entry required	- Select -	- Select -

Question Content Area

d. If the fair value of the portfolio of securities was $107,400 on December 31, 20Y6, what would be the journal entry to adjust the portfolio to fair value? If no entry is required, select "no entry required" and leave the amount box blank. If an amount box does not require an entry, leave it blank.

20Y6 Dec. 31	Trading InvestmentsUnrealized Gain on Available-for-Sale InvestmentsUnrealized Loss on Available-for-Sale InvestmentsValuation Allowance for Available-for-Sale InvestmentsNo entry required	- Select -	- Select -
	Trading InvestmentsUnrealized Gain on Available-for-Sale InvestmentsUnrealized Loss on Available-for-Sale InvestmentsValuation Allowance for Available-for-Sale InvestmentsNo entry required	- Select -	- Select -