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Fair value journal entries, available for sale investments Instructions Chart of Accounts Journal Final Question Instructions Hurricane Inc. purchased a portfolio of available for sale securities in Year 1, its first year of operations. The cost and fair value of this portfolio on December 31, Year 1, was as follows Name Number of Shares Total Cost Total Fair Value Tomado Inc 850.00 $14,442.00 $16.766.00 Tsunami Corp 1.300.00 31460.00 36.790.00 45.200,00 Typhoon Corp 2160.00 44.496.00 5 Total $90.398.00 596.756.00 M On June 12, Year 2, Hurricane purchased 1440 shares of Rogue Wave Inc. at 548 per share plus a $130 brokerage commission Required: A Provide the journal entries to record the following (refer to the Chart of Accounts for exact wording of account it) 1. The adjustment of the available for sale security portfolio to fair value on December 31, Year 2. The June 12, Year 2. purchase of Rogue Wave Inc. stock B. How are unrealized gains and losses treated differently for available for sale securities than for trading securities? Calculator Fair value journal entries, available for sale investments Instructions Chart of Accounts Journal Final Question Instructions Chart of Accounts Journal Final Question x count B. How are unazed gains and losses treated different for available for sale Securities than for trading securities? Unrealized gains and losses for available for sale securities are accumulated over time and reported as a credit (positive) or debitnegative) balance in the y section. As a result, the changes in far value on the income statement, as is the case with trading securities. Bypassing the income statement is on the grounds that available for sale securities will be held for a time than trading securities, thus, fluctuations in market prices have to cancel out over time 03 TI ASHTU wwwwwwwwww VIVE CH 13 AGUIDE 10 141 March IN 515 Cante 14 Sangre Thou Fair value journal entries, available for sale investments Instructions Chart of Accounts Journal Final Question Instructions Hurricane Inc. purchased a portfolio of available for sale securities in Year 1, its first year of operations. The cost and fair value of this portfolio on December 31, Year 1, was as follows Name Number of Shares Total Cost Total Fair Value Tomado Inc 850.00 $14,442.00 $16.766.00 Tsunami Corp 1.300.00 31460.00 36.790.00 45.200,00 Typhoon Corp 2160.00 44.496.00 5 Total $90.398.00 596.756.00 M On June 12, Year 2, Hurricane purchased 1440 shares of Rogue Wave Inc. at 548 per share plus a $130 brokerage commission Required: A Provide the journal entries to record the following (refer to the Chart of Accounts for exact wording of account it) 1. The adjustment of the available for sale security portfolio to fair value on December 31, Year 2. The June 12, Year 2. purchase of Rogue Wave Inc. stock B. How are unrealized gains and losses treated differently for available for sale securities than for trading securities? Calculator Fair value journal entries, available for sale investments Instructions Chart of Accounts Journal Final Question Instructions Chart of Accounts Journal Final Question x count B. How are unazed gains and losses treated different for available for sale Securities than for trading securities? Unrealized gains and losses for available for sale securities are accumulated over time and reported as a credit (positive) or debitnegative) balance in the y section. As a result, the changes in far value on the income statement, as is the case with trading securities. Bypassing the income statement is on the grounds that available for sale securities will be held for a time than trading securities, thus, fluctuations in market prices have to cancel out over time 03 TI ASHTU wwwwwwwwww VIVE CH 13 AGUIDE 10 141 March IN 515 Cante 14 Sangre Thou
