Practice Problem

B D E F 36 20 points 3 JOURNAL ENTRIES 37 PROBLEM 4 MARKET ADJUSTMENTS 38 39 Weaver Company has the following data at December 31, 2015 for its securities: 40 41 Securities COST FAIR 142 VALUE 143 144 Debt Investments - Trading Debt Investments - Available for sale Stock Investments 90,000 74,000 80,000 87,000 75,000 76,000 745 146 147 a 148 b Prepare the adjusting entries to report the securities at fair value. On what financial statement and in what section of that statement would each of the above accounts be reported. (6 all together) 149 150 151 Date Account Title Debit Credit 152 153 154 155 161 162 163 B Fair Value Adjustment - TRADING 164 165 Unrealized gain - INCOME 766 167 Unrealized loss - EQUITY 168 169 Fair Value Adjustment - AVAILABLE FOR SALE 170 171 Fair value adjustment - Stock 172 173 Unrealized gain - INCOME 174 175