| | | THE FOLLOWING INFORMATION PERTAINS TO ROB’S INC PORTFOLIO ON MARKETABL SECURITIES FOR THE YEAR ENDED DECEMBER 31, YEAR 1, AND DECEMBER 31, YEAR 1 |
| | | | Cost | Fair Value at 12/31 Year 1 | | | Year 2 Activities Purchases | | | Year 2 Sales Purchases | | | Fair Value 12/21/ Year 2 |
| Trading securities |
| Smith Co | | | 230000 | 240000 | | | | | | | | | 235,000 |
| Jones Co | | | 240000 | 275000 | | | | | | | | | 285,000 |
| Available for Sale Securities |
| Williams Co | | | 270000 | 245000 | | | | | | 255,000 | | | n/a |
| Gores Co | | | 250000 | 235000 | | | | | | | | | 265,000 |
| Held to Maturity Secutiees |
| Martin CO | | | | | | | 1,400,000 | | | | | | 1,250,000 |
| Note 1 Rob Inc Uses GAAP |
| Note 2: Job Inc uses valuation accounts to record changes in the fair value at marketable securities |
| Note 3: The Martin Co security was purchased at par value |
| Note 4: The decline in the value of Martin Co is considered to be other than temportary |
| Record the journal entries for the following marketable securities transactions based on the informatin given in the table. |
| 1) Mark the market journal entry for the Smith Co Security of 12/31 Year 1 |
| 2) 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 |
| 4) Mark to Market journal entry for the Gores Co security at 12/31 Yea 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 Willians Co security at 12/31 Year 2 |
| | 8) Mark to Market journal entry to the Gores Co Security at 12/31 Year 2 |
| | 9) Journal entry to record purchase at Martin Co Investments |
| | 10) Journal entry to record the impairment of Martin Co Investments |
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rob_question.xlsx
