Question
(TCO B) The following information pertains to Fox Inc.s portfolio of marketable securities for the Year ended Dec 31, Year 1 and Dec 31, Year
(TCO B) The following information pertains to Fox Inc.s portfolio of marketable securities for the Year ended Dec 31, Year 1 and Dec 31, Year 2.
|
| Cost | Fair Value at 12/31 Year 1 | Year 2 Activity: Purchases | Year 2 Activity: Sales | Fair Value at 12/31 Year 2 |
| Trading Securities |
|
|
|
|
|
| Smith Co. | $230,000 | $240,000 |
|
| $235,000 |
| Jones Co | $290,000 | $275,000 |
|
| $285,000 |
| Available for Sale Securities |
|
|
|
|
|
| Williamss Co. | $270,000 | $245,000 |
| $255,000 | N/A |
| Gores Co. | $250,000 | $235,000 |
|
| $265,000 |
| Held to Maturity Securities |
|
|
|
|
|
| Martin Co. |
|
| 1,400,000 |
| $1,250,000 |
Note 1: Fox Inc. uses US GAAP Note 2: Fox Inc. uses valuation accounts to record changes in the fair value of its marketable securities Note 3: The Martin Co. security was purchase at par value Note 4: The decline in the value of Martin Co. is considered to be other than temporary Requirement: Record the journal entries for the following marketable securities transactions based on the information given in the table.
Mark to market journal entry for the Smith Co security at 12/31 Year 1
Mark to market journal entry for the Jones Co security at 12/31 Year 1
Mark to market journal entry for the Williams Co security at 12/31 Year 1
Mark to market journal entry for the Gores Co security at 12/31 Year 1
Mark to market journal entry for the Smith Co security at 12/31 Year 2
Mark to market journal entry for the Jones Co security at 12/31 Year 2
Mark to market journal entry for the Williams Co security at 12/31 Year 2
Mark to market journal entry for the Gores Co security at 12/31 Year 2
Journal entry to record purchase of Martin Co. Investment
Journal entry to record the impairment of Martin Co. Investment
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Crossover Of Audit And Evaluation Practices Comparative Policy Evaluation
Authors: Maria Barrados, Jeremy Lonsdale
1st Edition
1032173874, 978-1032173870
