Information related to Jones Company's portfolio of trading debt securities at December 31, 2021 follows: Amortized cost of securities Gross unrealized gains (cumulative) Gross unrealized losses (cumulative) Jones reported a $10,000 credit balance in its FV Adjustment - Trading Securities account in its December 31, 2020 balance sheet. Assume that it sold no trading securities during 2021. Required: 1. How much should Jones report as unrealized gain or loss on its 2021 income statement? 2. Prepare the journal entry that Jones would make to record the 2021 fair value adjustment to its trading portfolio. Requirement 1: Amortized cost of securities at 12/31/2021 Gross unrealized gains (cumulative) Gross unrealized losses (cumulative) Net unrealized losses at 12/31/2021 $340,000 8,000 52,000 Less: Credit balance in FV Adjustment account at 12/31/2020 Additional credit needed to the FV Adjustment account Requirement 2: Debit Credit
Information related to Jones Company's portfolio of trading debt securities at December 31, 2021 follows: Amortized cost of securities Gross unrealized gains (cumulative) Gross unrealized losses (cumulative) Jones reported a $10,000 credit balance in its FV Adjustment - Trading Securities account in its December 31, 2020 balance sheet. Assume that it sold no trading securities during 2021. Required: 1. How much should Jones report as unrealized gain or loss on its 2021 income statement? 2. Prepare the journal entry that Jones would make to record the 2021 fair value adjustment to its trading portfolio. Requirement 1: Amortized cost of securities at 12/31/2021 Gross unrealized gains (cumulative) Gross unrealized losses (cumulative) Net unrealized losses at 12/31/2021 $340,000 8,000 52,000 Less: Credit balance in FV Adjustment account at 12/31/2020 Additional credit needed to the FV Adjustment account Requirement 2: Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Information related to Jones Company's portfolio of trading debt securities at December 31, 2021 follows: Jones reported a $10,000 credit balance in its FV Adjustment - Trading Securities account in its December 31, 2020
balance sheet. Assume that it sold no trading securities during 2021. Required: How much should Jones report as unrealized gain or loss on its 2021 income statement? Prepare the journal entry that Jones would make to record
the 2021 fair value adjustment to its trading portfolio. kequirement 1: Requirement 2:

Transcribed Image Text:Information related to Jones Company's portfolio of trading debt securities at
December 31, 2021 follows:
Amortized cost of securities
Gross unrealized gains (cumulative)
Gross unrealized losses (cumulative)
Jones reported a $10,000 credit balance in its FV Adjustment - Trading Securities
account in its December 31, 2020 balance sheet. Assume that it sold no trading
securities during 2021.
Required:
1. How much should Jones report as unrealized gain or loss on its 2021 income
statement?
2. Prepare the journal entry that Jones would make to record the 2021 fair value
adjustment to its trading portfolio.
Requirement 1:
Amortized cost of securities at 12/31/2021
Gross unrealized gains (cumulative)
Gross unrealized losses (cumulative)
Net unrealized losses at 12/31/2021
$340,000
8,000
52,000
Less: Credit balance in FV Adjustment account at 12/31/2020
Additional credit needed to the FV Adjustment account
Requirement 2:
Debit
Credit
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