At December 31, 2015, Williams Had the Following Portfolio of Trading

question 5

Essay

At December 31, 2015, Williams had the following portfolio of trading securities: Required:
a. Assuming any gain or loss is considered to be temporary, prepare the adjusting entry at
December 31, 2015, required under current GAAP.
b. Assuming that, in 2016, Williams sold the Nathan Co. stock for $83, prepare the entry to record the sale.
c. Assuming that at the end of 2016 the portfolio of trading securities is composed of the following holdings, prepare any necessary entry.

d. Assuming that at the end of 2017 the portfolio of trading securities is composed of the following holdings, prepare any necessary entry.

e. Assuming that, in 2018, the Jacob Co. bonds were reclassified as held-to-maturity when the market value was $34, prepare any necessary entry.

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Definitions:

Line Managers

Individuals who are directly responsible for overseeing and managing employees and operations to ensure the production of goods and services.

Program Champion

A person who is willing and able to “cut the red tape” to move the program forward.

Red Tape

Bureaucratic procedures and rules considered excessive and hindering processes.

Paralysis By Analysis

A situation where decision-making is hindered or halted by the excessive analysis of data or overthinking.