Question

At December 31, 2015, the trading securities for Storrer, Inc. are as follows.

Security
Cost
Fair Value
A $17,400 $16,200
B 12,300 13,800
C 23,500 19,200
$53,200 $49,200

Prepare the adjusting entry at December 31, 2015, to report the 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 0 for the amounts.)

Date
Account Titles and Explanation
Debit
Credit
Dec. 31

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Show the balance sheet and income statement presentation at December 31, 2015, after adjustment to fair value.

Storrer, Inc.
Balance Sheet (Partial)
December 31, 2015

Current Assets
Current Liabilities
Intangible Assets
Long-Term Investments
Long-Term Liabilities
Property, Plant and Equipment
Short-Term Investments
Stockholders' Equity
Total Assets
Total Current Assets
Total Current Liabilities
Total Intangible Assets
Total Liabilities
Total Liabilities and Stockholders' Equity
Total Long-Term Investments
Total Long-Term Liabilities
Total Property, Plant and Equipment
Total Stockholders' Equity
    
Current Assets    
Current Liabilities    
Intangible Assets    
Long-Term Investments    
Long-Term Liabilities    
Property, Plant and Equipment    
Short-Term Investments    
Stockholders' Equity    
Total Assets    
Total Current Assets    
Total Current Liabilities    
Total Intangible Assets    
Total Liabilities    
Total Liabilities and Stockholders' Equity    
Total Long-Term Investments    
Total Long-Term Liabilities    
Total Property, Plant and Equipment    
Total Stockholders' Equity    
$

Storrer, Inc.
Income Statement (Partial)
For the year ended December 31, 2015

Dividends
Expenses
Gross Profit / (Loss)
Income before Income Taxes
Income from Operations
Net Income / (Loss)
Net Sales
Retained Earnings, January 1
Retained Earnings, December 31
Sales Revenues
Total Expenses
Total Operating Expenses
Total Revenues
Operating Expenses
Other Expenses and Losses
Other Revenues and Gains
Unrealized Loss on Trading Securities
    
Dividends    
Expenses    
Gross Profit / (Loss)    
Income before Income Taxes    
Income from Operations    
Net Income / (Loss)    
Net Sales    
Retained Earnings, January 1    
Retained Earnings, December 31    
Sales Revenues    
Total Expenses    
Total Operating Expenses    
Total Revenues    
Operating Expenses    
Other Expenses and Losses    
Other Revenues and Gains    
Unrealized Loss on Trading Securities    
$

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Answer 1

Solution:

Date	General Journal	Debit	Credit
31-Dec-15	Unrealized loss on trading Secuurities Dr ($53200-$49200)	$4,000.00
	To Fair value Adjustment		$4,000.00
	(Being fair value adjustment of investment at balance sheet date)

Balance Sheet (Partial) December 31, 2015
Particulars	Amount
Current Assets:
Short Term Investment at fair Value	$49,200.00

Income Statement (Partial) For the year ended December 31, 2015
Particulars	Amount
Other Expenses and Losses:
Unrealized loss on trading Secuurities	$4,000.00