Willow Creek Incorporated had the following portfolio of securities on December 31, 2012: The balances in the
Question:
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The balances in the market adjustment accounts as of January 1, 2012, were as follows:
Market Adjustment-Trading Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9,000 Dr.
Market Adjustment-Available-for-Sale Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,600 Cr.
During 2013, Willow Creek determined that certain securities should be reclassified.
Those reclassifications are as follows:
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Instructions:
1. Make the necessary journal entries to adjust Willow Creek's portfolio of securities to fair value as of December 31, 2012.
2. Make the necessary journal entries to reclassify the securities in 2013?
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
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