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

d. Assuming that at the end of 2017 the portfolio of trading securities 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 $34, prepare any necessary entry.

Question

At December 31, 2015, Williams had the following portfolio of trading securities:  Required: 
a. Assuming any gain or loss is considered to be temporary, prepare the adjusting entry at
December 31, 2015, required under current GAAP.
b. Assuming that, in 2016, Williams sold the Nathan Co. stock for $83, prepare the entry to record the sale.
c. Assuming that at the end of 2016 the portfolio of trading securities is composed of the following holdings, prepare any necessary entry.
  
d. Assuming that at the end of 2017 the portfolio of trading securities 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 $34, prepare any necessary entry.

Quizplus · Accepted Answer

The Answer of At December 31, 2015, Williams had the following portfolio of trading securities:  Required: 
a. Assuming any gain or loss is considered to be temporary, prepare the adjusting entry at
December 31, 2015, required under current GAAP.
b. Assuming that, in 2016, Williams sold the Nathan Co. stock for $83, prepare the entry to record the sale.
c. Assuming that at the end of 2016 the portfolio of trading securities is composed of the following holdings, prepare any necessary entry.
  
d. Assuming that at the end of 2017 the portfolio of trading securities 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 $34, prepare any necessary entry.

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