EX $15-17$ Journal Entries for Available$-$for$-$Sale Securities.

OBJ. $2,4$

M$.$ Jones Inc. purchased the following available$-$for$-$sale securities during $20$Y$5,$ its first year of operations:

Details

The fair value of the various available$-$for$-$sale securities on December $31,20$Y$5,$ was as follows:

Journalize the adjusting entry for the fair value of the portfolio of securities on December $31,20$Y$5.$

SHOW ANSWER

If the fair value of the portfolio of securities were the same on December $31,20$Y$6,$ what would be the journal entry to adjust the portfolio to fair value?

If the fair value of the portfolio of securities was $$340,000$ on December $31,20$Y$6,$ what would be the journal entry to adjust the portfolio to fair value?

If the fair value of the portfolio of securities was $$330,000$ on December $31,20$Y$6,$ what would be the journal entry to adjust the portfolio to fair value?Answers are entered in the cells with gray backgrounds.

Cells with non$-$gray backgrounds are protected and cannot be edited.

a$.$

Year $1$

Dec. $31$

Arden Enterprises, Inc.

French Broad Industries, Inc.

Pisgah Construction, Inc.

Total

Fair Value

Cost

$($Dec $31,$ Year $1)$

$$

Increase $($decrease$)$ in fair value of trading investments

b$.$

$($Key essay answer here$)$