Kingbird Company began operations in 2020. Since then, it has reported the following gains and losses for its equity investments in on the income statement: | | | 2020 | | | 2021 | | | 2022 | | | Gains (losses) from sale of securities | | $16,000 | | | $(19,100) | | $14,300 | | | Unrealized holding losses on valuation of securities | | (24,800) | | | | | (14,700) | | Unrealized holding gain on valuation of securities | | | | | 9,200 | | | | | At January 1, 2023, Kingbird owned the following trading securities: | | | Cost | | BKD Common (15,000 shares @ $28) | | $420,000 | | LRF Preferred (2,400 shares @ $105) | | 252,000 | During 2020, the following events occurred: | 1. | | Sold 5,400 shares of BKD for $183,600. | | 2. | | Acquired 1,000 shares of Horton Common for $42 per share. Brokerage commissions totaled $1,000. | At 12/31/23, the fair values for Kingbird's investments were: | BKD Common, $26 per share | | LRF Preferred, $110 per share | | Horton Common, $47 per share | | | | |
| | Compute the balance in the Fair Value Adjustment account at December 31, 2022 (after the adjusting entry for 2022 is made). (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) | Balance in fair value adjustment account | | $ | | | | |
| | Compute the aggregate cost and fair values for Kingbird's securities portfolio at 12/31/23. | Aggregate cost | | $ | | Aggregate fair value | | $ | | | | |
| | Prepare the necessary adjusting entry based upon your analysis in (b) above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) | Date | Account Titles and Explanation | Debit | Credit | | 12/31/23 | | | | | | | | | | | |
Kingbird Company began operations in 2020. Since then, it has reported the following gains and losses for its equity investments in on the income statement: 2020 Gains (losses) from sale of securities $16,000 Unrealized holding losses on valuation of securities (24,800) Unrealized holding gain on valuation of securities - 2021 2022 $(19,100) $14,300 - (14,700) 9,200 - At January 1, 2023, Kingbird owned the following trading securities: BKD Common (15,000 shares @ $28) LRF Preferred (2,400 shares @ $105) Cost $420,000 252,000 During 2020, the following events occurred: 1. Sold 5,400 shares of BKD for $183,600. 2. Acquired 1,000 shares of Horton Common for $42 per share. Brokerage commissions totaled $1,000. At 12/31/23, the fair values for Kingbird's investments were: BKD Common, $26 per share LRF Preferred, $110 per share Horton Common, $47 per share Compute the balance in the Fair Value Adjustment account at December 31, 2022 (after the adjusting entry for 2022 is made). (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Balance in fair value adjustment account SHOW LIST OF ACCOUNTS Compute the aggregate cost and fair values for Kingbird's securities portfolio at 12/31/23. Aggregate cost Aggregate fair value A Prepare the necessary adjusting entry based upon your analysis in (b) above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit 12/31/23
