At December 31, 2015, Williams had the following portfolio of trading securities:

Cost Market Value

Jacob Co. bonds $30 $32

Nathan Co. stock $90 $84

Required:

a. Assuming any gain or loss is considered to be temporary, prepare the adjusting entry at December 31, 2015, required under current GAAP.

b. Assuming that, in 2016, Williams sold the Nathan Co. stock for $83, prepare the entry to record the sale.

c. Assuming that at the end of 2016 the portfolio of trading securities is composed of the following holdings, prepare any necessary entry. The Eric Co. stock was acquired earlier in 2016 for $84.

d. Assuming that at the end of 2017 the portfolio of trading securities is composed of the following holdings, prepare any necessary entry.

e. Assuming that, in 2018, the Jacob Co. bonds were reclassified as held-to-maturity when the market value was $34, prepare any necessary entry.

Answer rating: 100% (QA)

a Dr Unrealized loss Stock 6 PL Account Dr Market value adjustments Bonds 2 Balance Sheet Account Cr ... View the full answer