Ticker services began operations in 2015 and maintains long-term investments in available-for-sale securities. the year-end cost and fair values for its portfolio of these investments follow. portfolio of available-for-sale securities cost fair valuedecember 31, 2015 $ 369,060 $ 357,988 december 31, 2016 420,728 445,972 december 31, 2017 572,190 676,901 december 31, 2018 864,007 768,966 prepare journal entries to record each year-end fair value adjustment for these securities. calculation adjustment required to fair value adjustment.12/31/15 existing balance in fair value adjustment-afs (lt) required balance in fair value adjustment-afs (lt) adjustment required to fair value adjustment-afs (lt) 12/31/16 existing balance in fair value adjustment-afs (lt) required balance in fair value adjustment-afs (lt) adjustment required to fair value adjustment-afs (lt) 12/31/17 existing balance in fair value adjustment-afs (lt) required balance in fair value adjustment-afs (lt) adjustment required to fair value adjustment-afs (lt) 12/31/18 existing balance in fair value adjustment-afs (lt) required balance in fair value adjustment-afs (lt) adjustment required to fair value adjustment-afs (lt) record the year-end adjusting entry for the securities portfolio as of december 31, 2015.date general journal debit creditdec 31, 2015 record the year-end adjusting entry for the securities portfolio as of december 31, 2016.date general journal debit creditdec 31, 2016 record the year-end adjusting entry for the securities portfolio as of december 31, 2017.date general journal debit creditdec 31, 2017 record the year-end adjusting entry for the securities portfolio as of december 31, 2018.date general journal debit creditdec 31, 2018

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

The journal entries will be as follows:

31 December 2015

Debit: Unrealised loss - equity $9,080

Credit: Fair value (FV) adjustment AFS (Long Term investment - LT) $9,080

31 December 2016

Debit: FV adjustment - AFS (LT) $29,783

Credit: Unrealised loss - equity $9,080

Credit: Unrealised gain - equity $20,703

31 December 2017

Debit: FV adjustment - AFS (LT) $65,174

Credit: Unrealised gain - equity $65,174

31 December 2018

Debit: Unrealised gain - equity $85,877

Debit: Unrealised loss - equity $77,947

Credit: Fair value adjustment - AFS (LT) $163,824

Explanation:

31 December 2015: Record FV of securities ($302,680 - $293,600) = $9,080 - FV loss

31 December 2016: Record FV of securities, FV adjustment - AFS (LT) = $345,055 - $365,758 = $20,703 net gain ($9,080 prior year loss + $20,703 current year gain)

31 December 2017: Record FV of securities: FV adjustment - AFS (LT) - $469,275 - $555,152 = $85,877 net gain (current year gain $85,877 - $20,703 prior gain)

31 December 2018: Record FV of securities: FV adjustment - AFS (LT) = $708,605 - $630,658 = $77,947 net loss ($85,877 prior year gain + $77,947 current year loss)