Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing a business risk appraoch

Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston

6th Edition

9780324645095, 324645090, 978-0324375589

More Books

Students also viewed these Accounting questions

Question

=+a) Make a decision tree for these decisions.

Answered: 1 week ago