At December 31, 2015, the trading securities for Storrer, Inc. are as follows. S
ID: 2525491 • Letter: A
Question
At December 31, 2015, the trading securities for Storrer, Inc. are as follows.
Security
Cost
Fair Value
A $17,400 $16,200
B 12,300 13,800
C 23,500 19,200
$53,200 $49,200
Prepare the adjusting entry at December 31, 2015, to report the securities at fair value. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
Dec. 31
SHOW LIST OF ACCOUNTS
LINK TO TEXT
Show the balance sheet and income statement presentation at December 31, 2015, after adjustment to fair value.
Storrer, Inc.
Balance Sheet (Partial)
December 31, 2015
Current Assets
Current Liabilities
Intangible Assets
Long-Term Investments
Long-Term Liabilities
Property, Plant and Equipment
Short-Term Investments
Stockholders' Equity
Total Assets
Total Current Assets
Total Current Liabilities
Total Intangible Assets
Total Liabilities
Total Liabilities and Stockholders' Equity
Total Long-Term Investments
Total Long-Term Liabilities
Total Property, Plant and Equipment
Total Stockholders' Equity
Current Assets
Current Liabilities
Intangible Assets
Long-Term Investments
Long-Term Liabilities
Property, Plant and Equipment
Short-Term Investments
Stockholders' Equity
Total Assets
Total Current Assets
Total Current Liabilities
Total Intangible Assets
Total Liabilities
Total Liabilities and Stockholders' Equity
Total Long-Term Investments
Total Long-Term Liabilities
Total Property, Plant and Equipment
Total Stockholders' Equity
$
Storrer, Inc.
Income Statement (Partial)
For the year ended December 31, 2015
Dividends
Expenses
Gross Profit / (Loss)
Income before Income Taxes
Income from Operations
Net Income / (Loss)
Net Sales
Retained Earnings, January 1
Retained Earnings, December 31
Sales Revenues
Total Expenses
Total Operating Expenses
Total Revenues
Operating Expenses
Other Expenses and Losses
Other Revenues and Gains
Unrealized Loss on Trading Securities
Dividends
Expenses
Gross Profit / (Loss)
Income before Income Taxes
Income from Operations
Net Income / (Loss)
Net Sales
Retained Earnings, January 1
Retained Earnings, December 31
Sales Revenues
Total Expenses
Total Operating Expenses
Total Revenues
Operating Expenses
Other Expenses and Losses
Other Revenues and Gains
Unrealized Loss on Trading Securities
$
SHOW LIST OF ACCOUNTS
Explanation / Answer
Solution:
Date General Journal Debit Credit 31-Dec-15 Unrealized loss on trading Secuurities Dr ($53200-$49200) $4,000.00 To Fair value Adjustment $4,000.00 (Being fair value adjustment of investment at balance sheet date)Related Questions
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