At December 31, 2025, the available-for-sale debt portfolio for Pharoah, Inc. is as follows.SecurityCostFair ValueUnrealizedGain (Loss)A$17,900$14,400$(3,500)B11,10014,0002,900C23,30025,7002,400Total$52,300$54,1001,800Previous fair value adjustment balance-Dr.400Fair value adjustment-Dr.$1,400On January 20, 2026, Pharoah, Inc. sold security A for $14,500. The sale proceeds are net of brokerage fees.Pharoah, Inc. reports net income in 2025 of $115,000 and in 2026 of $138,000. Unrealized holding gains or losses equal $41,000 in2026.(a)Prepare a statement of comprehensive income for 2025, starting with net income.PHAROAH, INCStatement of Comprehensive Income(b)eTextbook and MediaSave for Later$Attempts: 0 of 3 usedSubmit AnswerThe parts of this question must be completed in order. This part will be available when you complete the part above.

Unrealized holding gains or losses refer to changes in the fair value of assets, such as…

At December 31, 2025, the available-for-sale debt portfolio for Pharoah, Inc. is as fol Unrealized Security Cost Fair Value Gain (Loss) A $17,900 $14,400 $(3,500) B 11,100 14,000 2,900 C 23,300 25,700 2,400 Total $52,300 $54,100 1,800 Previous fair value adjustment balance-Dr. 400 Fair value adjustment-Dr. $1,400

At December 31, 2025, the available-for-sale debt portfolio for Pharoah, Inc. is as fol Unrealized Security Cost Fair Value Gain (Loss) A $17,900 $14,400 $(3,500) B 11,100 14,000 2,900 C 23,300 25,700 2,400 Total $52,300 $54,100 1,800 Previous fair value adjustment balance-Dr. 400 Fair value adjustment-Dr. $1,400

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Please help with problem. At the beginning of 2019, Ace Company had the following portfolio of investments in available-for-sale debt securities (all of which were acquired at par value): Security Cost 1/1/19 Fair Value A $25,000 $31,000 B 38,000 36,000 Totals $63,000 $67,000 During 2019, the following transactions occurred: Transactions: May 3 Purchased C debt securities at their par value for $50,000. July 1 Sold all of the A securities for $31,000 plus interest of $1,000. Dec. 31 Received interest of $1,000 on the B and C securities. Additionally the following information was available: Security 12/31/19 Fair Value B $42,000 C 53,000 Required: 1. Prepare journal entries to record the preceding information. 2. What is the balance in the Unrealized Holding Gain/Loss account on December 31, 2019? 3. Next Level What justification does the FASB give for its treatment of unrealized holding gains and losses…
Based on the information below, I have to prepare the adjusting entry at December 31, 2022 to report the securities at fair value. Thank you in advance!
On June 30, 2021, Waterway Industries had outstanding 8%, $8020000 face amount, 15-year bonds maturing on June 30, 2031. Interest is payable on June 30 and December 31. The unamortized balance in the bond discount account on June 30, 2021 was $361000. On June 30, 2021, Waterway acquired all of these bonds at 94 and retired them. What net carrying amount should be used in computing gain or loss on this early extinguishment of debt? $7538800. $7659000. $7939000. $7739200.
Carpark Services began operations in 2001 and maintains investments in available-for-sale debt securities. The year-end cost and fair values for its portfolio of these debt securities follows. Available-for-Sale Securities December 31, 20x1 December 31, 20x2 Cost $ 250,000 $ 340,000 Fair Value $ 251,000 $ 350,000 The year-end adjusting entry to record the unrealized gain/loss at December 31, 20X1 is: Debit Unvealed Gain-Equity $1000; Credit Fair Value Adjustment-Available for Sale $1.000 Debit Uzed Loss-Equity $1,000, Credit Fair Value Adjustment-Available-for-Sale $1.000 Detit Realized Loss-Income $1,000: Creat Fair Value Adjustment-Available for Sale $1,000 Debat Far Value Adjustment-Available for Sale $1.000 Credit Unrealized Loss-Equity $1,000
At December 31, 2020, the available-for-sale debt portfolio for Windsor, Inc. is as follows. Security Cost Fair Value UnrealizedGain (Loss) A $27,125 $23,250 $(3,875 ) B 19,375 21,700 2,325 C 35,650 39,525 3,875 Total $82,150 $84,475 2,325 Previous fair value adjustment balance—Dr. 620 Fair value adjustment—Dr. $1,705 On January 20, 2021, Windsor, Inc. sold security A for $23,405. The sale proceeds are net of brokerage fees. 1). Prepare the adjusting entry at December 31, 2020, to report the portfolio at fair value. 2). Show the balance sheet presentation of the investment-related accounts at December 31, 2020
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At December 31, 2025, Pharoah Company has a portfolio of equity securities valued at $136000. Its cost was $116000. If the Fair Value Adjustment has a debit balance of $7200, which of the following journal entries is required at December 31, 2025? O Unrealized Holding Gain or Loss-Income Fair Value Adjustment Fair Value Adjustment Unrealized Holding Gain or Loss-Income Fair Value Adjustment Unrealized Holding Gain or Loss-Income Unrealized Holding Gain or Loss-Income Fair Value Adjustment 12800 12800 20000 20000 12800 12800 20000 20000
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