Equity Investments Fair Value Method The following information is available for the Rosen Company as of December 31, year 1 regarding its investments. 4,200 shares of Grimes Company common stock 3,750 shares of Oliver Company common stock Total of portfolio Previous fair value adjustment balance Cost $43,900 23,750 $67,650 Requirements 1. Make an adjusting entry needed for December 31, year 1. Fair Value $44,275 21,995 66,270 1,650

Adjusting AFS Debt Securities to Fair Value A portfolio of investments of available-for-sale securities held by Dow Inc. is as follows.   Dec. 31, 2020 Cost Fair Value Eastern Corp. bonds $204,000 $217,600 Western Corp. bonds 340,000 348,500 Total $544,000 $566,100     Dec. 31, 2021 Cost Fair Value Eastern Corp. bonds $204,000 $238,000 Western Corp. bonds 340,000 323,000 Total $544,000 $561,000 The Fair Value Adjustment account had a $0 balance on January 1, 2020. No sales or purchases took place in the available-for-sale investment portfolio in 2020 and 2021. a. Record the adjusting entry on December 31, 2020, to adjust the debt investments to fair value.   Date Account Name Dr. Cr. Dec. 31, 2020                 b. Record the adjusting entry on December 31, 2021, to adjust the debt investments to fair value. .  Date Account Name Dr. Cr. Dec. 31, 2021               c. Indicate how the adjustment to fair value in (b) would be…

Use the following information on a company’s investments in equity securities to answer questions 1- 2 below.  The company’s accounting year ends December 31.     Investment Date of acquisition Cost Fair value 12/31/16 Date sold Selling price Ajax Company stock 6/20/16 $40,000 $35,000 2/10/17 $32,000 Bril Corporation stock 5/1/16   20,000 N/A 11/15/16   26,000 Coy Company stock 8/2/16   16,000   16,500 1/17/17   23,000 1. If the above investments are categorized as trading securities, what amount is reported for gain or loss on securities, on the 2016 income statement?               2. If the above investments are categorized as trading securities, what amount is reported for gain or loss on securities, on the 2017 income statement?

Topic: Investment Prepare all necessary entries and provide all financial statements

Fair value adjustment for trading investments During the year ended December 31, 20Y3, trading securities were purchased for $346,000. On December 31, 20Y3, the securities had a fair value of $309,000. Journalize the December 31, 20Y3, adjusting entry to record the unrealized gain or loss on trading investments purchased in 20Y3. If an amount box does not require an entry, leave it blank. 20Y3 Dec. 31

options for a:   Available-for-sale Investments, at cost cash Retained Earnings Unrealized gain(loss) on available-for-sale Investments Valuation Allowance for  available-for-sale Investments options for b first slot is yes or no Second slot is as other revenue/expense or in the stockholder equity section

Journal entries for trading investments The investments of Charger Inc. include an investment of trading securities of Raiders Inc. purchased on February 24, 20Y7, for $216,000. The fair value of the securities on December 31, 20Y7, is $288,000. a. Journalize the entries for the February 24 purchase and the adjustment to fair value on December 31, 20Y7. If an amount box does not require an entry, leave it blank. 20Y7 Feb. 24 Accounting numeric field 20Y7 Dec. 31 Feedback Check My Work a. Increase the investment and reduce Cash for number of shares times the per share price. The unrealized gain (credit) or unrealized loss (debit) is the difference between the acquired per share price and the market price per share at 20Y7 taken times the number of shares acquired. The offset account for the gain or loss entry is the valuation allowance account. b. How is a unrealized gain or loss for trading investments reported on the financial statements? 00

Fair Value Journal Entries, Available-for-Sale Investments The investments of Steelers Inc. include a single investment: 8,100 shares of Bengals Inc. common stock purchased on September 12, Year 1, for $13 per share including brokerage commission. These shares were classified as available-for-sale securities. As of the December 31, Year 1, balance sheet date, the share price declined to $10 per share. CashCash DividendsInterest ReceivableInvestments-Bengals Inc. StockRetained EarningsUnrealized Gain (Loss) on Available-for-Sale InvestmentsValuation Allowance for Available-for-Sale Investme a. Journalize the entries to acquire the investment on September 12 and record the adjustment to fair value on December 31, Year 1. Year 1 Sept. 12 fill in the blank fb2219094fa204f_2fill in the blank fb2219094fa204f_4Year 1 Dec. 31 fill in the blank fb2219094fa204f_6fill in the blank fb2219094fa204f_8b. How is the unrealized gain or loss for available-for-sale investments disclosed on the financial…

Balance Sheet Presentation of Available-for-Sale Investments During Year 1, its first year of operations, Galileo Company purchased two available-for-sale investments as follows: Security Shares Purchased Cost Hawking Inc. 860   $43,602   Pavlov Co. 2,330   61,512   Assume that as of December 31, Year 1, the Hawking Inc. stock had a market value of $60 per share and the Pavlov Co. stock had a market value of $48 per share. Galileo Company had net income of $337,400 and paid no dividends for the year ending December 31, Year 1. All of the available-for-sale investments are classified as current assets.   a.  Prepare the Current Assets section of the balance sheet presentation for the available-for-sale investments. Galileo Company Balance Sheet (selected items) December 31, Year 1 Assets     Current Assets:       $fill in the blank 6f30cb02405dfbc_2   Plus Unrealized Gain (Loss) on Available-for-Sale Investments  fill in the blank 6f30cb02405dfbc_4 $fill…

Balance Sheet Presentation of Available-for-Sale Investments During Year 1, its first year of operations, Galileo Company purchased two available-for-sale investments as follows: Security Shares Purchased Cost Hawking Inc. 860   $43,602   Pavlov Co. 2,330   61,512   Assume that as of December 31, Year 1, the Hawking Inc. stock had a market value of $60 per share and the Pavlov Co. stock had a market value of $48 per share. Galileo Company had net income of $337,400 and paid no dividends for the year ending December 31, Year 1. All of the available-for-sale investments are classified as current assets. available for sale investments at cost/available for sale investments at fair value/common stock/retained earning/unrealized gain (loss) on available for sale investments/less retained earning/less unrealized gain (loss) on available for sale /plus retained earnings/plus unrealized gain (loss) on available/plus valuation allowance for available for sale/less unrealized gain…