During the course of your examination of the financial statements of Doppler Corporation for the year ended December 31, 2015, you found a new account, "Investments." Your examination revealed that during 2015, Doppler began a program of investments, and all investment-related transactions were entered in this account. Your analysis of this account for 2015 follows: Additional information:1. The fair value for each security as of the 2015 date of each transaction follow: 2. All of the investments of Doppler are nominal in respect to percentage of ownership (5% or less)."3. Each investment is considered by Doppler's management to be available-for-sale.
Instructions(1) Prepare any necessary correcting journal entries related to investments
(a) and (b).(2) Prepare the entry, if necessary, to record the proper valuation of the available-for-sale equity security portfolio as of December 31, 2015."

Question

During the course of your examination of the financial statements of Doppler Corporation for the year ended December 31, 2015, you found a new account, "Investments." Your examination revealed that during 2015, Doppler began a program of investments, and all investment-related transactions were entered in this account. Your analysis of this account for 2015 follows:  Additional information:1. The fair value for each security as of the 2015 date of each transaction follow:  2. All of the investments of Doppler are nominal in respect to percentage of ownership (5% or less)."3. Each investment is considered by Doppler's management to be available-for-sale.
Instructions(1) Prepare any necessary correcting journal entries related to investments 
(a) and (b).(2) Prepare the entry, if necessary, to record the proper valuation of the available-for-sale equity security portfolio as of December 31, 2015."

Quizplus · Accepted Answer

The Answer of During the course of your examination of the financial statements of Doppler Corporation for the year ended December 31, 2015, you found a new account, "Investments." Your examination revealed that during 2015, Doppler began a program of investments, and all investment-related transactions were entered in this account. Your analysis of this account for 2015 follows:  Additional information:1. The fair value for each security as of the 2015 date of each transaction follow:  2. All of the investments of Doppler are nominal in respect to percentage of ownership (5% or less)."3. Each investment is considered by Doppler's management to be available-for-sale.
Instructions(1) Prepare any necessary correcting journal entries related to investments 
(a) and (b).(2) Prepare the entry, if necessary, to record the proper valuation of the available-for-sale equity security portfolio as of December 31, 2015."

During the Course of Your Examination of the Financial Statements