Cost Fair Value at Year 2 Activity, accounting assignment help

The following information pertains to Fox Inc.’s portfolio of marketable securities for the Year ended Dec 31, Year 1 and Dec 31, Year 2.

Cost

Fair Value at 
12/31 Year 1

Year 2 Activity:
Purchases

Year 2 Activity:
Sales

Fair Value at 
12/31 Year 2

Trading Securities

Smith Co.

$230,000

$240,000

$235,000

Jones Co

$290,000

$275,000

$285,000

Available for Sale Securities

Williams’s Co.

$270,000

$245,000

$255,000

N/A

Gores Co.

$250,000

$235,000

$265,000

Held to Maturity Securities

Martin Co.

1,400,000

$1,250,000

Note 1: Fox Inc. uses US GAAP

Note 2: Fox Inc. uses valuation accounts to record changes in the fair value of its marketable securities

Note 3: The Martin Co. security was purchase at par value

Note 4: The decline in the value of Martin Co.  is considered to be other than temporary

Requirement:

Record the journal entries for the following marketable securities transactions based on the information given in the table.

  1. Mark to market journal entry for the  Smith Co security at 12/31 Year 1
  2. Mark to market journal entry for the  Jones Co security at 12/31 Year 1
  3. Mark to market journal entry for the  Williams Co security at 12/31 Year 1
  4. Mark to market journal entry for the  Gores  Co security at 12/31 Year 1
  5. Mark to market journal entry for the  Smith Co security at 12/31 Year 2
  6. Mark to market journal entry for the  Jones  Co security at 12/31 Year 2
  7. Mark to market journal entry for the  Williams Co security at 12/31 Year 2
  8. Mark to market journal entry for the  Gores  Co security at 12/31 Year 2
  9. Journal entry to record  purchase of Martin Co. Investment
  10. Journal entry to record the impairment of Martin Co. Investment

 
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