Answer:
1.
Dec. 31, year 1
Dr Fair value adjustment – AFS (LT) 11,140
Cr Unrealized gain – Equity 11,140
2.
Dec. 31, year 2
Dr Fair value adjustment – AFS (LT) 16,160
Cr Unrealized gain – Equity 16,160
3
Dec. 31, year 3
Dr Fair value adjustment – AFS (LT) 73,000
Cr Unrealized gain – Equity 73,000
4.
Dec. 31, year 4
Dr Unrealized loss – Equity 3,600
Cr Fair value adjustment – AFS (LT) 3,600
Explanation:
General journal for Ticker Services
1.
Dec. 31, year 1
Dr Fair value adjustment – AFS (LT) 11,140
Cr Unrealized gain – Equity 11,140
($372,000 $360,860)
2.
Dec. 31, year 2
Dr Fair value adjustment – AFS (LT) 16,160
Cr Unrealized gain – Equity 16,160
(455,800-428,500) -11,140
3.
Dec. 31, year 3
Dr Fair value adjustment – AFS (LT) 73,000
Cr Unrealized gain – Equity 73,000
(700,500-600,200)-(455,800-428,500)
100,300-27,300=73,000
4.
Dec. 31, year 4
Dr Unrealized loss – Equity 3,600
Cr Fair value adjustment – AFS (LT) 3,600
(700,500-600,200) -(876,900 -780,200)
100,300-96,700
3,600
