At December 31, 2015, Williams had the following portfolio of equity securities available-for-sale:
Required:
a.Assuming any gain or loss is considered to be temporary, prepare the adjusting entry required under current GAAP.
b.Assuming that, in 2016, William’s sold the Nathan Co. stock for $83, record the sale.
c.Assuming that the portfolio at the end of 2016 is composed of the following holdings, prepare any necessary entry.

d.Assuming that the portfolio at the end of 2017 is composed of the following holdings, prepare any necessary entry.

e.Assuming that, in 2018, the Jacob Co. bonds were reclassified as held-to-maturity when the market value was $94, prepare any necessary entry.

Question

At December 31, 2015, Williams had the following portfolio of equity securities available-for-sale: 
Required: 
a.Assuming any gain or loss is considered to be temporary, prepare the adjusting entry required under current GAAP.
b.Assuming that, in 2016, William’s sold the Nathan Co. stock for $83, record the sale.
c.Assuming that the portfolio at the end of 2016 is composed of the following holdings, prepare any necessary entry.

d.Assuming that the portfolio at the end of 2017 is composed of the following holdings, prepare any necessary entry.

e.Assuming that, in 2018, the Jacob Co. bonds were reclassified as held-to-maturity when the market value was $94, prepare any necessary entry.

Quizplus · Accepted Answer

The Answer of At December 31, 2015, Williams had the following portfolio of equity securities available-for-sale: 
Required: 
a.Assuming any gain or loss is considered to be temporary, prepare the adjusting entry required under current GAAP.
b.Assuming that, in 2016, William’s sold the Nathan Co. stock for $83, record the sale.
c.Assuming that the portfolio at the end of 2016 is composed of the following holdings, prepare any necessary entry.

d.Assuming that the portfolio at the end of 2017 is composed of the following holdings, prepare any necessary entry.

e.Assuming that, in 2018, the Jacob Co. bonds were reclassified as held-to-maturity when the market value was $94, prepare any necessary entry.

At December 31, 2015, Williams Had the Following Portfolio of Equity