Week_2_Homework_Answers

Week_2_Homework_Answers - Problem 15-4A (40 minutes) Part 1

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Problem 15-4A (40 minutes) Part 1 Available-for-sale securities on December 31, 2009 Security Cost Market Value 3,500 shares of Company B common stock. .... $ 79,690 $ 81,375 17,500 shares of Company C common stock. .... 662,600 610,312 4,200 shares of Company X common stock. .... 119,775 110,250 8,300 shares of Company Z common stock. .... 263,946 272,240 $1,126,011 $1,074,177 Disclosure The portfolio of available-for-sale securities would be reported on the December 31, 2009, balance sheet at its market value of $1,074,177 . Part 2 Dec. 31 Market Adjustment—AFS*. ................................ 13,508 Unrealized Loss—Equity. ........................... 13,508 Adjustment to market for AFS securities. . * December 31, 2008 available-for-sale securities Cost Market Value $ 535,300 $ 500,000 159,380 151,000 662,600 640,938 $1,357,280 $1,291,938 December 31, 2009, adjustment to the Market Adjustment account: $1,357,280 - $1,291,938 = $ 65,342 Cr. balance on Dec. 31, 2008 $1,126,011 - $1,074,177 = 51,834 Cr. balance required on Dec. 31, 2009 $ 13,508 Dr. to adjust cost to market value
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This note was uploaded on 11/15/2010 for the course AC 202 taught by Professor Nancyeverett during the Fall '09 term at Park.

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Week_2_Homework_Answers - Problem 15-4A (40 minutes) Part 1

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