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 |
Year 2 Activity: |
Year 2 Activity: |
Fair Value at |
|
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.
- Mark to market journal entry for the Smith Co security at 12/31 Year 1
- Mark to market journal entry for the Jones Co security at 12/31 Year 1
- Mark to market journal entry for the Williams Co security at 12/31 Year 1
- Mark to market journal entry for the Gores Co security at 12/31 Year 1
- Mark to market journal entry for the Smith Co security at 12/31 Year 2
- Mark to market journal entry for the Jones Co security at 12/31 Year 2
- Mark to market journal entry for the Williams Co security at 12/31 Year 2
- Mark to market journal entry for the Gores Co security at 12/31 Year 2
- Journal entry to record purchase of Martin Co. Investment
- Journal entry to record the impairment of Martin Co. Investment