Following Is Data for the Available-For-Sale Securities Held by Lindy

question 112

Essay

Following is data for the available-for-sale securities held by Lindy Company as of December 31:
$\begin{array}{|l|r|r|r|r|r|}\hline \text { Name } & {\begin{array}{c}\text { Number of } \\\text { Shares }\end{array}} & \begin{array}{c}\text { Cost } \\\text { per Share }\end{array} & \begin{array}{c}\text { Fair Value } \\\text { per Share }\end{array} & \text { Total Cost } & \begin{array}{c}\text { Total } \\\text { Fair Value }\end{array} \\\hline \text { Laurie, Inc. } & 1,200 & \$ 15.00 & \$ 15.40 & & \\\hline \text { Scott Corp. } & 800 & 8.00 & 8.25 & & \\\hline \text { Stephanie Company } & 700 & 14.40 & 13.50 & & \\\hline \text { Timmer Company } & 900 & 12.35 & 10.77 & & \\\hline \text { Total } & & & & &\\\hline\end{array}$
a. Complete the table above to find the total cost and fair value for the company's available­for­sale securities portfolio.
b. Calculate and record the required December 31 adjustment.
c. Explain how the adjustment from step 2 is reported on Lindy's financial statements.

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Definitions:

Insomnia

A sleep disorder that is characterized by difficulty falling and/or staying asleep.

REM Sleep

A unique phase of sleep in mammals and birds, characterized by random movement of the eyes, low muscle tone throughout the body, and the propensity of the sleeper to dream vividly.

Narcolepsy

A chronic sleep disorder characterized by overwhelming daytime drowsiness and sudden attacks of sleep.

Insomnia

A common sleep disorder characterized by trouble falling asleep, staying asleep, or getting restorative sleep.