Assume that for several years Fister Links Products has held Microsoft bonds, considered by the company to be securities available for-sale. The bonds were acquired at a cost of $610,000. At the end of 2024, their fair value was $742.000 and their amortized cost was $620,000. At the end of 2025, their fair value was $737,500 and their amortized cost was $630,000 At what amount will the investment be reported in the December 31, 2025, balance sheet? What adjusting entry is required to accomplish this objective (ignore interest)?
Assume that for several years Fister Links Products has held Microsoft bonds, considered by the company to be securities available for-sale. The bonds were acquired at a cost of $610,000. At the end of 2024, their fair value was $742.000 and their amortized cost was $620,000. At the end of 2025, their fair value was $737,500 and their amortized cost was $630,000 At what amount will the investment be reported in the December 31, 2025, balance sheet? What adjusting entry is required to accomplish this objective (ignore interest)?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Assume that for several years Fister Links Products has held Microsoft bonds, considered by the company to be securities available-
for-sale. The bonds were acquired at a cost of $610,000. At the end of 2024, their fair value was $742,000 and their amortized cost
was $620,000. At the end of 2025, their fair value was $737,500 and their amortized cost was $630,000
At what amount will the investment be reported in the December 31, 2025, balance sheet? What adjusting entry is required to
accomplish this objective (ignore interest)?
Complete this question by entering your answers in the tabs below.
General
Journal
Balance Sheet
What adjusting entry is required to accomplish this objective (ignore interest)?
Note: If no entry is required for a transaction/event, select "No journal entry required in the first account field.
View transaction list
Journal entry
worksheet
Record the adjusting entry to report the correct amount on this year's
balance sheet.
Note: Enter debits before credits.
Date
December 31,
2025
Record entry
General Journal
Loss on investments (unrealized, OCI)
Fair value adjustment
Clear entry
Debit
Credit
View general journal
Transcribed Image Text:Assume that for several years Fister Links Products has held Microsoft bonds, considered by the company to be securities available-
for-sale. The bonds were acquired at a cost of $610,000. At the end of 2024, their fair value was $742,000 and their amortized cost
was $620,000. At the end of 2025, their fair value was $737,500 and their amortized cost was $630,000.
At what amount will the investment be reported in the December 31, 2025, balance sheet? What adjusting entry is required to
accomplish this objective (ignore interest)?
Complete this question by entering your answers in the tabs below.
General
Journal
At what amount will the investment be reported in the December 31, 2025, balance sheet?
Investment
Balance Sheet
General Journal >
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