Ceradyne Corporation has these data at December 31, 2025: Carrying Securities Amount Fair Value Trading investments $99,000 $110,000 Long-term investments 98,000 91,000 The long-term investments are debt investments, accounted at amortized cost, held for the purpose of earning interest income. The long-term debt investments were purchased at par (100%) and pay interest of $6,200 annually on December 31. Prepare the adjusting entries, if any, required for each class of securities. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Dec. 31 Unrealized Loss on Trading Investments Dec. 31 Trading Investments (To record unrealized gain / loss on trading investments.) (To record unrealized gain / loss on Long-term investments.) Debit 5,751 Credit 5,751
Ceradyne Corporation has these data at December 31, 2025: Carrying Securities Amount Fair Value Trading investments $99,000 $110,000 Long-term investments 98,000 91,000 The long-term investments are debt investments, accounted at amortized cost, held for the purpose of earning interest income. The long-term debt investments were purchased at par (100%) and pay interest of $6,200 annually on December 31. Prepare the adjusting entries, if any, required for each class of securities. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Dec. 31 Unrealized Loss on Trading Investments Dec. 31 Trading Investments (To record unrealized gain / loss on trading investments.) (To record unrealized gain / loss on Long-term investments.) Debit 5,751 Credit 5,751
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Indicate the statement presentation of each class of securities and any related unrealized gain (loss) accounts.
Transcribed Image Text:Ceradyne Corporation has these data at December 31, 2025:
Carrying
Securities
Amount
Fair Value
Trading investments
$99,000
$110,000
Long-term investments
98,000
91,000
The long-term investments are debt investments, accounted at amortized cost, held for the purpose of earning interest income. The
long-term debt investments were purchased at par (100%) and pay interest of $6,200 annually on December 31.
Transcribed Image Text:Prepare the adjusting entries, if any, required for each class of securities. (Credit account titles are automatically indented
when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required,
select "No Entry" for the account titles and enter 0 for the amounts.)
Date
Account Titles and Explanation
Dec. 31
Unrealized Loss on Trading Investments
Dec. 31
Trading Investments
(To record unrealized gain / loss on
trading investments.)
(To record unrealized gain / loss on
Long-term investments.)
Debit
5,751
Credit
5,751
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education