EH.7 (LO 3), AP Writing At December 31, 2022, available-for-sale debt securities for Gwynn, Inc. are as follows. The securities are considered to be a long-term investment. Fair Value Instructions Security A B C Total Cost $18,100 12,500 23,000 $53,600 $16,000 14,800 18,000 $48,800 a. Prepare the adjusting entry at December 31, 2022, to report the securities at fair value b. Show the statement presentation at December 31, 2022, after adjustment to fair value c. Pam Jenks, a member of the board of directors, does not understand the reporting of the unrealized gains or losses on trading debt securities and available-for-sale debt securities. Write a letter to Ms. Jenks explaining the reporting and the purposes it serves.
EH.7 (LO 3), AP Writing At December 31, 2022, available-for-sale debt securities for Gwynn, Inc. are as follows. The securities are considered to be a long-term investment. Fair Value Instructions Security A B C Total Cost $18,100 12,500 23,000 $53,600 $16,000 14,800 18,000 $48,800 a. Prepare the adjusting entry at December 31, 2022, to report the securities at fair value b. Show the statement presentation at December 31, 2022, after adjustment to fair value c. Pam Jenks, a member of the board of directors, does not understand the reporting of the unrealized gains or losses on trading debt securities and available-for-sale debt securities. Write a letter to Ms. Jenks explaining the reporting and the purposes it serves.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 9E
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![EH.7 (LO 3), AP Writing At December 31, 2022, available-for-sale debt securities for
Gwynn, Inc. are as follows. The securities are considered to be a long-term investment.
Fair Value
Security
A
B
C
Total
Cost
$18,100
12,500
23,000
$53,600
$16,000
14,800
18,000
$48,800
Instructions
a. Prepare the adjusting entry at December 31, 2022, to report the securities at fair value.
b. Show the statement presentation at December 31, 2022, after adjustment to fair value.
c. Pam Jenks, a member of the board of directors, does not understand the reporting of
the unrealized gains or losses on trading debt securities and available-for-sale debt
securities. Write a letter to Ms. Jenks explaining the reporting and the purposes it
serves.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd18ada24-749b-4c48-a625-cdbd2ad1f088%2F184b925d-6d05-4db1-8cf5-ea85b2b68032%2F4ssl6p8_processed.png&w=3840&q=75)
Transcribed Image Text:EH.7 (LO 3), AP Writing At December 31, 2022, available-for-sale debt securities for
Gwynn, Inc. are as follows. The securities are considered to be a long-term investment.
Fair Value
Security
A
B
C
Total
Cost
$18,100
12,500
23,000
$53,600
$16,000
14,800
18,000
$48,800
Instructions
a. Prepare the adjusting entry at December 31, 2022, to report the securities at fair value.
b. Show the statement presentation at December 31, 2022, after adjustment to fair value.
c. Pam Jenks, a member of the board of directors, does not understand the reporting of
the unrealized gains or losses on trading debt securities and available-for-sale debt
securities. Write a letter to Ms. Jenks explaining the reporting and the purposes it
serves.
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