Ticker Services began operations in Year 1 and holds long-term investments in available-for-sale debt securities. The year-end cost and fair values for its portfolio of these investments follow. Portfolio of Available-for-Sale Securities December 31, Year 1 December 31, Year 2 December 31, Year 3 December 31, Year 4 View transaction list View journal entry worksheet Prepare journal entries to record each year-end fair value adjustment for these securities. No 3 Cost $11,000 18,900 20,600 14,800 Date Dec. 31, Year 3 No Transaction Recorded Fair Value $17,500 28,000 30, 200 19,700 General Journal Debit Credit Ⓒ

Exercise C-7 (Algo) Multiyear fair value adjustments to available-for-sale debt securities LO P3 Ticker Services began operations in Year 1 and holds long-term investments in available-for-sale debt securities. The year-end costs and fair values for its portfolio of these investments follow. Portfolio of Available-for-Sale Securities December 31, Year 1 December 31, Year 2 December 31, Year 3 Cost $ 12,600 17,900 21,300 December 31, Year 4 15,300 Prepare journal entries to record each year-end fair value adjustment for these securities. No 1 2 3 4 Date December 31, Year Unrealized loss - Equity Answer is complete but not entirely correct. General Journal Fair value adjustment-AFS December 31, Year Fair value adjustment-AFS Unrealized loss - Equity December 31, Year Fair value adjustment-AFS Unrealized loss - Equity December 31, Year Unrealized loss - Equity Fair Value $ 16,500 Fair value adjustment-AFS 26,100 32,600 20,600 X O x > * X › Debit 3,900 8,200 11,300 5,300 Credit 3,900 8,200…

2 Required information Problem 15-3A (Algo) Debt Investments in available-for-sale securities; unrealized and realized gains and losses LO P3 [The following information applies to the questions displayed below.] Stoll Company's long-term available-for-sale portfolio at the start of this year consists of the following. Available-for-Sale Securities Company A bonds Fair Value $ 492,000 155,000 642,140 Stoll enters into the following transactions involving its available-for-sale debt securities this year. January 29 Sold one-half of the Company B notes for $78,820. July 6 Purchased Company X bonds for $122,100. November 13 Purchased Company Z notes for $267,300. December 9 Sold all of the Company A bonds for $524,800. Fair values at December 31 are B, $82,300; C, $603,800; X. $120,000; and Z, $276,000. Company B notes Company C bonds Problem 15-3A (Algo) Part 1 and 2 Cost $ 534,100 159, 140 662,400 Required: 1. Prepare journal entries to record these transactions, including the December…