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! At December 31, 2022, available-for-sale debt securities for Sunland, Inc. are as follows. The securities are considered to be a long-term investment.| Security | Cost | Fair Value ||----------|---------|------------|| A | $17,490 | $16,160 || B | $12,060 | $16,082 || C | $24,450 | $16,550 || **Total**| $54,000 | $48,792 |This table outlines the cost and fair value of long-term investment securities held by Sunland, Inc. as of December 31, 2022. The table lists each security (A, B, and C), their respective costs, and their fair values. The total cost of these investments is $54,000, while the total fair value is $48,792.

The unrealized gain or loss calculated from difference between the fair value and cost is recogized…

Answered: $17,490 12,060 24,450 $16,160 16,082…

Business

Accounting

$17,490 12,060 24,450 $16,160 16,082 16,550

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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Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

Question

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!

At December 31, 2022, available-for-sale debt securities for Sunland, Inc. are as follows. The securities are considered to be a long-term investment.

| Security | Cost | Fair Value |
|----------|---------|------------|
| A | $17,490 | $16,160 |
| B | $12,060 | $16,082 |
| C | $24,450 | $16,550 |
| **Total**| $54,000 | $48,792 |

This table outlines the cost and fair value of long-term investment securities held by Sunland, Inc. as of December 31, 2022. The table lists each security (A, B, and C), their respective costs, and their fair values. The total cost of these investments is $54,000, while the total fair value is $48,792.

Definition Definition Entries made at the end of every accounting period to precisely replicate the expenses and revenue of the current period. This is also known as end of period adjustment. It can also refer to financial reporting that corrects errors made previously in the accounting period. Every adjustment entry affects at least one real account and one nominal account.

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