Ticker Services began operations in 2015 and maintains long-term investments in

Question

Ticker Services began operations in 2015 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, 2015 $ 317,030 $ 307,519 December 31, 2016 361,414 383,099 December 31, 2017 491,523 581,472 December 31, 2018 742,200 660,558 Prepare journal entries to record each year-end fair value adjustment for these securities. Complete this question by entering your answers in the tabs below General Journal Calculation Calculation adjustment required to fair value adjustment 2/31/15 Existing balance in Fair Value Adjustment-AFS (LT) Required balance in Fair Value Adjustment-AFS (LT) Adjustment required to Fair Value Adjustment-AFS (LT) 12131/16 Existing balance in Fair Value Adjustment-AFS (LT) Required balance in Fair Value Adjustment-AFS (LT) Adjustment required to Fair Value Adjustment-AFS (LT) 12131/17 Existing balance in Fair Value Adjustment-AFS (LT) Required balance in Fair Value Adjustment-AFS (LT) Adjustment required to Fair Value Adjustment-AFS (LT) 12/31/18 Existing balance in Fair Value Adjustment-AFS (LT) Required balance in Fair Value Adjustment-AFS (LT) Adjustment required to Fair Value Adjustment-AFS (LT) Calculation General Journal>

Explanation / Answer

Portfolio of Available-for-Sale Securities Cost Fair Value fair value (below)/above 31-Dec-15 317,030 307,519 -9,511 31-Dec-16 361,414 383,099 21,685 31-Dec-17 491,523 581,472 89,949 31-Dec-18 742,200 660,558 -81,642 12/31 2015 Exisiting balance in Fair value adjustment-AFS (LT) 0 Required balance in Fair value adjustment-AFS (LT) 9,511 credit adhjustment required in Fair value adjustment-AFS (LT) 9,511 credit 12/31 2016 Exisiting balance in Fair value adjustment-AFS (LT) A 9,511 credit Required balance in Fair value adjustment-AFS (LT) A+B 31,196 debit adhjustment required in Fair value adjustment-AFS (LT) B 21,685 debit 12/31 2017 Exisiting balance in Fair value adjustment-AFS (LT) A 21,685 debit Required balance in Fair value adjustment-AFS (LT) B-A 68,264 debit adhjustment required in Fair value adjustment-AFS (LT) B 89,949 debit 12/31 2018 Exisiting balance in Fair value adjustment-AFS (LT) 89,949 debit Required balance in Fair value adjustment-AFS (LT) A+B 171,591 credit adhjustment required in Fair value adjustment-AFS (LT) 81,642 credit Dr Cr 12/31/2015 Unrealized Loss-Equity 9,511 Fair value adjustment AFS(LT) 9,511 12/31/2016 Fair value adjustment AFS(LT) 31,196 Unrealized Loss-Equity 9,511 Unrealized Gain-Equity 21,685 12/31/2017 Fair value adjustment AFS(LT) 68,264 Unrealized Gain-Equity 68,264 12/31/2018 Unrealized Loss-Equity 81,642 Unrealized Gain-Equity 89,949 Fair value adjustment AFS(LT) 171,591 If any doubt please comment

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