Ticker Services began operations in 2013 and maintains long-term investments in

Question

Ticker Services began operations in 2013 and maintains long-term investments in available-for-sale securities. The year-end cost and fair values for its portfolio of these investments follow. Portfolio of Available-for-Sale Securities Cost Fair Value December 31, 2013 $ 304,830 $ 295,685 December 31, 2014 347,506 368,356 December 31, 2015 472,608 559,095 December 31, 2016 713,638 635,138 Prepare journal entries to record each year-end fair value adjustment for these securities. (If no entry is required select No journal entry required in the first entry field.) 12/31/13 Existing balance in Fair Value Adjustment-AFS (LT) Required balance in Fair Value Adjustment-AFS (LT) Adjustment required to Fair Value Adjustment-AFS (LT) $9,145 credit 12/31/14 Existing balance in Fair Value Adjustment-AFS (LT) 0 Required balance in Fair Value Adjustment-AFS (LT) Adjustment required to Fair Value Adjustment-AFS (LT) 12/31/15 Existing balance in Fair Value Adjustment-AFS (LT) 0 Required balance in Fair Value Adjustment-AFS (LT) Adjustment required to Fair Value Adjustment-AFS (LT) 12/31/16 Existing balance in Fair Value Adjustment-AFS (LT) 0 Required balance in Fair Value Adjustment-AFS (LT) Adjustment required to Fair Value Adjustment-AFS (LT)

Explanation / Answer

1. on 31-12-2013

fair value adjustment account Dr. 9145

to investment in afs a/c 9145

2. on 31.12.2014

investimet in afs a/c Dr. 20850

to fair value adjustment a/c 20850

3. on 31.12.2015

investment in afs a/c Dr. 86487

to fair value adjustment a/c 86487

4. on 31.12.2016

fair value adjustmnet a/c Dr. 78500

to investment in afs a/c 78500

note : at the end of each year on 31st december the balance of Fair value adjustment a/c will be transfered to profit and loss accout.

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