Question
M. Jones Inc. purchased the following available-for-sale securities during 20Y5, its first year of operations: Issuing Company Cost Arden Enterprises Inc. $80,730 French Broad Industries
M. Jones Inc. purchased the following available-for-sale securities during 20Y5, its first year of operations:
Issuing Company | Cost | |
Arden Enterprises Inc. | $80,730 | |
French Broad Industries Inc. | 20,800 | |
Pisgah Construction Inc. | 10,000 | |
Total | $111,530 |
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. | $103,350 |
French Broad Industries Inc. | 22,100 |
Pisgah Construction Inc. | 9,400 |
$134,850 |
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.
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.
Question Content Area
c. If the fair value of the portfolio of securities was $137,750 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.
Question Content Area
d. If the fair value of the portfolio of securities was $132,750 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.
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