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 $35,000 $44,000 B 53,000 50,000 Totals $88,000 $94,000 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 $44,000 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 $58,000 C 53,000 1.What is the balance in the Unrealized Holding Gain/Loss account on December 31, 2019?
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 $35,000 $44,000 B 53,000 50,000 Totals $88,000 $94,000 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 $44,000 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 $58,000 C 53,000 1.What is the balance in the Unrealized Holding Gain/Loss account on December 31, 2019?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 | $35,000 | $44,000 |
B | 53,000 | 50,000 |
Totals | $88,000 | $94,000 |
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 $44,000 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 | $58,000 |
C | 53,000 |
1.What is the balance in the Unrealized Holding Gain/Loss account on December 31, 2019? fill in the blank |
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