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895
Problem 15-1A (Concluded)
2019
Feb. 27
Short-Term Investments—Trading (HCA) ................
116,020
June 21
Cash ......................................................................
91,980
Nov. 1
Cash ......................................................................
32,541
Dec. 31
Fair Value Adjustment—Trading (ST)................
25,897
We can also use a T-account to determine the needed adjustment to fair value:
12/31/2019—F.V. Adj—Trading
896
Problem 15-2A (40 minutes)
Part 1
2017
Apr. 16
Short-Term Investments—AFS (Gem) .........................
97,180
Aug. 1
Cash ...............................................................................
101,500
897
Problem 15-2A (Continued)
Part 2
Comparison of Cost and Fair Values for AFS Portfolio
Unrealized
Cost Fair Value Gain (Loss)
Gem Co. (2,000 x $24.25) + 90a ............... $ 48,590
Part 3
Part 4
The balance sheet would report the cost of these short-term investments in
Part 5
(a) Income statement
898
Problem 15-3A (60 minutes)
Part 1
2017
Problem 15-3A (Continued)
2018
Apr. 15
Cash ..........................................................................................
22,975
Aug. 19
Long-Term Investments—AFS (Eastman Kodak) .......................
15,498
Dec. 31
Unrealized Loss⎯Equity ........................................................
10,168
900
Problem 15-3A (Continued)
2019
Feb. 27
Long-Term Investments—AFS (Microsoft) ................................
161,325
Aug. 3
Cash .........................................................................................
9,315
901
Problem 15-3A (Concluded)
Part 2
12/31/2017
12/31/2018
12/31/2019
Part 3
2017
2018
2019
Realized gains (losses)
902
Problem 15-4A (30 minutes)
Part 1
1. Journal entries (assuming significant influence)
2017
2018
2019
903
Problem 15-4A (Continued)
2. Carrying value per share, January 1, 2019 (see computations in part 1)
Part 2
1. Journal entries (assuming NO significant influence)
2017
904
Problem 15-4A (Concluded)
2019
2. Investment cost per share, January 1, 2019
3. Change in Selk’s equity due to stock investment
Problem 15-5A (40 minutes)
Part 1
Available-for-sale securities on December 31, 2017
Security
Cost
Fair Value
Disclosure
Part 2
Part 3
Year 2017 realized gains (losses)
Stock Sold
Cost
Sale
Gain (Loss)
906
PROBLEM SET B
Problem 15-1B (60 minutes)
Part 1
2017
Mar. 10
Short-Term Investments—Trading (AOL) ...................
143,505
Problem 15-1B (Continued)
2018
Dec. 31
Fair Value Adjustment—Trading (ST) .................
33,298
908
Problem 15-1B (Concluded)
909
Problem 15-2B (40 minutes)
Part 1
Feb. 6
Short-Term Investments—AFS (Nokia)............
143,250
Problem 15-2B (Concluded)
Part 2
Comparison of Cost and Fair Values of AFS Portfolio
Unrealized
Cost Fair Value Gain (Loss)
Part 3
Part 4
The balance sheet would report the cost of these short-term investments in
Part 5
(a) Income statement
(b) Equity section of Balance sheet
911
Problem 15-3B (60 minutes)
Part 1
2017
