Question

1. Make all adjustments on the "Adjusting Journal Entries" tab. Remember to include a description under...

1. Make all adjustments on the "Adjusting Journal Entries" tab. Remember to include a description under each journal entry.

11 The following information is available for ABC Corporation at 12/31/14 regarding its investments in stocks of other companies.
Securities Cost Fair Value
2,200 shares of Toyota Corporation Common Stock $ 100,000 $ 125,000
1,100 shares of G.M. Corporation Common Stock $    67,000 $ 34,000
$ 167,000 $ 159,000
Prepare the adjusting entry (if any) for 2014, assuming the securities are classified as trading.
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Answer #1
Journal Entries
Date ACCT Title and explanation Debit Credit
A) Loss on available for Sale of Securities $8,000
       To Available for Sale securities $8,000
(To Record the price in reduction of avaialble of securities)
Cost Fair Value
Securities
Toyota Corporation comm Stock $1,00,000 $1,25,000
GM Corporation comm Stock $67,000 $34,000
$1,67,000 $1,59,000
Difference is unrealized losss $8,000
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