The following information shows Carperk Company's individual investments in securities during its current year, along with the December 31 fair values. a. Investment in Brava Company bonds: $490,650 cost $533,337 fair value. Carperk intends to hold these bonds until they mature in 5 years. b. Investment in Baybridge common stock 29,500 shares: $390,067 cost $424,003 fair value. Carperk owns 32% of Baybridge's voting stock and has a significant influence over Baybridge c. Investment in Duffa bonds. $201.167 cost: $216,858 fair value. This investment is not readily marketable and is not classified as held- to-maturity or trading d. Investment in Newton notes: $111.868 cost: $109,966 fair value. Newton notes are not readily marketable and are not classified as held-to-maturity or trading e. Investment in Farmers common stock 16,300 shares. $122,663 cost $130,268 fair value. This stock is marketable, and Carperk intends to sell it within the year. This stock investment results in Carperk having an insignificant influence over Farmers. Required: 1. Identify whether each investment should be classified as a short-term or long-term investment. For each investment, indicate in which of the six investment classifications it should be placed. 2. Prepare a journal entry dated December 31 to record the fair value adjustment for the portfolio of available for sale debt securities Carperk had no available for sale debt securities prior to this year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Identify whether each investment should be assified as a short-term or long term investment. For each investment, indicate in which of the six investment classifications it should be placed Type of investment Classification of Long-term Investment Required 2 > Required: 1. Identify whether each investment should be classified as a short-term or long-term investment. For each in which of the six investment classifications it should be placed. 2. Prepare a journal entry dated December 31 to record the fair value adjustment for the portfolio of available Carperk had no available for sale debt securities prior to this year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a journal entry dated December 31 to record the fair value adjustment for the portfolio of available for sa Carperk had no available for sale debt securities prior to this year. View transaction list Journal entry worksheet Record the fair value adjustment for the portfolio of available-for-sale debt securities. Carperk had no available for sale debt securities prior to this year. Notes Enter debits before credits Date General Journal Dec 31 Debit Credit Record entry Clear entry View general journal
