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

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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