142.Discuss the similarities and differences in reporting trading securities, available-for-sale securities and held-to-maturity securities.
143.On January 1, the Valuation Allowance for Available-for-Sale Investments account had a zero balance. OnDecember 31, the cost of the available-for-sale securities was $48,700, and the fair value was $39,200. Prepare theadjusting entry to record the unrealized gain or loss for available-for-sale investments on December 31.
144.The cost and fair value of the trading securities held by Lindy Company as of December 31 are as follows:
?
?
Name
|
?
Number of Shares
|
?
Cost
per Share
|
Fair Value
per Share
|
?
Total Cost
|
?
Total
Fair Value
|
Laurie, Inc.
|
1,200
|
$10.50
|
$11.05
|
|
|
Scott Corp.
|
600
|
9.00
|
9.85
|
|
|
Stephanie Company
|
900
|
4.10
|
4.00
|
|
|
Timmer Company
|
1,400
|
7.35
|
6.82
|
|
|
Total
|
|
|
|
|
|
(a) Complete the table above to find the total cost and fair value for the company’s trading securities portfolio.
(b) Calculate and record the required December 31 adjustment.
(c) Explain how the adjustment from step (b) is reported on Lindy’s financial statements.
145.Following is data for the available-for-sale securities held by Lindy Company as of December 31:
Name
|
Number of Shares
|
Cost
per Share
|
Fair Value
per Share
|
Total Cost
|
Total
Fair Value
|
Laurie, Inc.
|
1,200
|
$15.00
|
$15.40
|
|
|
Scott Corp.
|
800
|
8.00
|
8.25
|
|
|
Stephanie Company
|
700
|
14.40
|
13.50
|
|
|
Timmer Company
|
900
|
12.35
|
10.77
|
|
|
Total
|
|
|
|
|
|
(a) Complete the table above to find the total cost and fair value for the company’s availableforsale securitiesportfolio.
(b) Calculate and record the required December 31 adjustment.
(c) Explain how the adjustment from step (2) is reported on Lindy’s financial statements.