Sharp, Inc., had the following portfolio of investment securities on January 1, 2003
|
Fair Market Value |
||||
|
Security |
Type |
Classification |
Historical Cost |
(1/1/03) |
|
1 |
Debt |
Trading |
$1,000 |
$ 800 |
|
2 |
Equity |
Trading |
1,250 |
1,100 |
|
3 |
Debt |
Trading |
1,700 |
1,650 |
|
4 |
Debt |
Available for sale |
2,200 |
2,150 |
|
5 |
Debt |
Held to maturity |
1,800 |
1,750 |
Appropriate adjustments have been made in prior years. No securities were bought or sold during 2003. On December 31, 2003, Sharp’s portfolio of securities had the following fair market values:
|
Fair Market Value |
|
|
Security |
(12/31/03) |
|
1 |
$ 650 |
|
2 |
1,200 |
|
3 |
1,700 |
|
4 |
2,250 |
|
5 |
1,850 |
Prepare the necessary adjusting entry(ies) on December 31, 2003.