Valix Finacc vol 1 Problem 9-10

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 9-10

2008

Jan.   1   Available for sale securities                                                1,320,000

                    Cash                                                                                                      1,320,000

Dec. 31   Unrealized loss – AFS                                                               80,000

                                Available for sale securities                                                                       80,000

2009

Dec. 31   Investment equity security                                                    650,000

               Unrealized loss – transfer of AFS                                              70,000

                    Available for sale securities                                                                     650,000

                    Unrealized loss – AFS                                                                                  70,000

         31   Available for sale securities                                                  110,000

                    Unrealized loss – AFS                                                                                  10,000                    Unrealized gain – AFS                                                                                100,000

                                                           

                Market of W and X – 12/31/2009                                                                 700,000

                Market of W and X – 12/31/2008                                                                 590,000

                Increase in value                                                                                         110,000