Current Attempt in Progress Some of Sheridan Corporation's investments in debt securities are classified as trading securities and some are classified as available- for-sale. The cost and fair value of each category at December 31, 2022, were as follows. Cost Fair Value Unrealized Gain (Loss) Trading securities $95,500 $84,000 $(11,500) Available-for-sale securities $60,000 $63,000 $3,000 At December 31, 2021, the Fair Value Adjustment-Trading account had a debit balance of $2,600, and the Fair Value Adjustment- Available-for-Sale account had a credit balance of $7,800. Prepare the required journal entries for each group of securities for December 31, 2022. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.)
Current Attempt in Progress Some of Sheridan Corporation's investments in debt securities are classified as trading securities and some are classified as available- for-sale. The cost and fair value of each category at December 31, 2022, were as follows. Cost Fair Value Unrealized Gain (Loss) Trading securities $95,500 $84,000 $(11,500) Available-for-sale securities $60,000 $63,000 $3,000 At December 31, 2021, the Fair Value Adjustment-Trading account had a debit balance of $2,600, and the Fair Value Adjustment- Available-for-Sale account had a credit balance of $7,800. Prepare the required journal entries for each group of securities for December 31, 2022. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.)
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 19E
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![Current Attempt in Progress
Some of Sheridan Corporation's investments in debt securities are classified as trading securities and some are classified as available-
for-sale. The cost and fair value of each category at December 31, 2022, were as follows.
Cost
Fair Value
Unrealized Gain (Loss)
Trading securities
$95,500
$84,000
Available-for-sale securities
$60,000 $63,000
$(11,500)
$3,000
At December 31, 2021, the Fair Value Adjustment-Trading account had a debit balance of $2,600, and the Fair Value Adjustment-
Available-for-Sale account had a credit balance of $7,800.
Prepare the required journal entries for each group of securities for December 31, 2022. (List all debit entries before credit entries. Credit
account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the
account titles and enter O for the amounts.)
No. Account Titles and Explanation
Trading securities:
Debit
Credit
1.
Unrealized Gain or Loss-Income
2.
Fair Value Adjustment-Trading
Available-for-sale securities:
Fair Value Adjustment-Available-for-Sale
Unrealized Gain or Loss-Income
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Transcribed Image Text:Current Attempt in Progress
Some of Sheridan Corporation's investments in debt securities are classified as trading securities and some are classified as available-
for-sale. The cost and fair value of each category at December 31, 2022, were as follows.
Cost
Fair Value
Unrealized Gain (Loss)
Trading securities
$95,500
$84,000
Available-for-sale securities
$60,000 $63,000
$(11,500)
$3,000
At December 31, 2021, the Fair Value Adjustment-Trading account had a debit balance of $2,600, and the Fair Value Adjustment-
Available-for-Sale account had a credit balance of $7,800.
Prepare the required journal entries for each group of securities for December 31, 2022. (List all debit entries before credit entries. Credit
account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the
account titles and enter O for the amounts.)
No. Account Titles and Explanation
Trading securities:
Debit
Credit
1.
Unrealized Gain or Loss-Income
2.
Fair Value Adjustment-Trading
Available-for-sale securities:
Fair Value Adjustment-Available-for-Sale
Unrealized Gain or Loss-Income
Save for Later Last saved 1 second ago.
Saved work will be auto-submitted on the due date. Auto-
submission can take up to 10 minutes.
Attempts: 0 of 1 used Submit Answer
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