Question: GL1501 - Based on Problem 15-4A LO P4 Edmunds Corp. had no short-term investments prior to the year 2017. It had the following transactions involving

GL1501 - Based on Problem 15-4A LO P4

Edmunds Corp. had no short-term investments prior to the year 2017. It had the following transactions involving short-term investments in available-for-sale securities during 2017.

Apr.	16	Purchased 6,000 shares of MYC Co. stock at $25 per share.
July	7	Purchased 4,500 shares of STO Co. stock at $50 per share.
	20	Purchased 2,000 shares of CMO Co. stock at $17 per share.
Aug.	15	Received an $1.40 per share cash dividend on the MYC Co. stock.
	28	Sold 3,600 shares of MYC Co. stock at $28 per share.
Oct.	1	Received a $3.00 per share cash dividend on the STO Co. shares.
Dec.	15	Received a $1.70 per share cash dividend on the remaining MYC Co. shares.
	31	Received a $2.40 per share cash dividend on the STO Co. shares.

The year-end fair values per share are: MYC Co., $26.00; STO Co., $48.50; and CMO Co., $14.00. Calculate the total cost and total fair value of the available-for-sale portfolio as of December 31, and calculate the amount of the required year-end adjusting entry, if any.

The answer is not complete.

Requirement
General Journal
General Ledger
Trial Balance

Cost of investments at December 31:	# of Shares		Cost
	MYC Company stock	not attempted		not attempted
	STO Co. stock	not attempted		not attempted
	CMO Co.	not attempted		not attempted
	Total cost

	Fair value of investments at December 31:	# of Shares	Fair value per share	Fair Value
	MYC Company stock		not attempted
	STO Co. stock		not attempted
	CMO Co.		not attempted
	Total fair value

	Total unrealized gain/loss as of December 31:		not attempted	not attempted

Step 1:	Determine what the unadjusted balance in the fair value adjustment equals:		not attempted
Step 2:	Determine what the adjusted balance in the fair value adjustment account should equal:		not attempted	not attempted
Step 3:	Determine the amount of the adjustment to the fair value adjustment account required to get from Step 1 to Step 2:		not attempted	not attempted

Fair Value Adj
Transaction Analysis
Fin St Impact

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