FULL SCREEN | | PRINTER VERSION : BACK NEXT OURCES Exercise 16-12 Uttinger Compa

Question

FULL SCREEN | | PRINTER VERSION : BACK NEXT OURCES Exercise 16-12 Uttinger Company has the following data at December 31, 2017. Trading Available-for-sale CostFair Value $121,200 $125,500 100,800 96,800 in. The available-for-sale securities are held as a long-term investment. Prepare the adjusting entries to report: (1) Trading securities at fair value and (2) Available-for sale securities at fair value. [Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation ebit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT Version 4 24 2

Explanation / Answer

a) Journal Entries 1) Fair value adjustment _trading ($125,500 - $121,200) $4,300                 Unrealized gain –Income $4,300 2) Unrealized gain or loss-Equity ($100,800 - $96,800) $4,000                   Fair value adjustment —Non-Trading $4,000 b) Uttinger Company Balance Sheet (Partial) Current Assets Short-term investments, at fair value $125,500 Investments Available for sale securities, at fair value $96,800 Stockholders’ equity Less: Unrealized loss on non-trading securities $4,000 c) Uttinger Company Income Statement Other income and expense Unrealized gain on trading securities . $4,300

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