Valuing available-for-sale securities at fair valueInstructionsJournalOrInstructions Chart of Accounts JournalPriOrva Prepare the adjusting entry to record the unrealized gain or loss on available-for-sale investments on December 31. Refer to the Charnuth123DATEDESCRIPTIONAdjusting EntriesXJOURNALPOST. REF.DEBITCREDIT InstructionsOn January 1, Valuation Allowance for Available for Sale investments had a zero balanceOn December 21, the cost of the available for sale securities was $78,400, and the fairvalue was $72,290Prepare the adjusting entry to record the unrealized gain or loss on available-for-saleinvestments on December 31. Refer to the Chart of Accounts for exact wording of accounttities.

The unrealized loss available for sale = $6110 ( $78400 - $72290 )

Instructions On January 1, Valuation Allowance for Available for Sale Investments had a zero balance On December 21, the cost of the available for sale securities was $78,400, and the fair value was $72,290 Prepare the adjusting entry to record the unrealized gain or loss on available-for-sale investments on December 31. Refer to the Chart of Accounts for exact wording of account titles

Instructions On January 1, Valuation Allowance for Available for Sale Investments had a zero balance On December 21, the cost of the available for sale securities was $78,400, and the fair value was $72,290 Prepare the adjusting entry to record the unrealized gain or loss on available-for-sale investments on December 31. Refer to the Chart of Accounts for exact wording of account titles

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The adjusted trial balance for Sheridan Farm Corporation at the end of the current year contained the following accounts. Interest Payable Lease Liability Bonds Payable, due 2027 Premium on Bonds Payable $8,000 85,600 175,600 28,000 Prepare the long-term liabilities section of the balance sheet. (Enter account name only and do not provide descriptive information.) Sheridan Farm Corporation Balance Sheet (Partial) $ $
Ticker Services began operations in Year 1 and holds long-term investments in available-for-sale debt securities. The year-end cost and fair values for its portfolio of these investments follow. Portfolio of Available-for-Sale Securities December 31, Year 1 December 31, Year 2 Cost $ 13,000 20,000 23,000 16,500 December 31, Year 3 December 31, Year 4 Complete this question by entering your answers in the tabs below. Prepare journal entries to record each year-end fair value adjustment for these securities. Adjustment General Journal Calculation Calculation adjustment required to fair value adjustment. 12/31/Year 1 Existing balance in Fair Value Adjustment-AFS (LT) Required balance in Fair Value Adjustment-AFS (LT) Adjustment required to Fair Value Adjustment-AFS (LT) 12/31/Year 2 Existing balance in Fair Value Adjustment-AFS (LT) Required balance in Fair Value Adjustment-AFS (LT) Adjustment required to Fair Value Adjustment-AFS (LT) 12/31/Year 3 Existing balance in Fair Value…
Assume that on July 1, Jerome, Incorporated, paid $100,000 to buy Potter's 8 percent, two-year bonds with a $ bonds pay interest semiannually on December 31 and June 30. Jerome intends to hold the bonds until they ma Complete the necessary December 31 entry to record receipt of interest by selecting the account names from and entering dollar amounts in the debit and credit columns. View transaction list Journal entry worksheet 1 Assume that on July 1, Jerome, Inc., paid $100,000 to buy Potter's 8 percent, two-year bonds with a $100,000 par value. The bonds pay interest semiannually on December 31 and June 30. Jerome intends to hold the bonds until they mature. Complete the necessary December 31 entry to record Note: Enter debits before credits. Date Dec. 31 General Journal Debit Credit
On January 1, 20Y3, Valuation Allowance for Trading Investments had a zero balance. On December 31, 20Y3, the cost of the trading securities portfolio was $346,000, and the fair value was $309,000. Required: Journalize the December 31, 20Y3, adjusting entry to record the unrealized gain or loss on trading investments. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Petty Cash 120 Accounts Receivable 121 Allowance for Doubtful Accounts 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 145 Office Supplies 161 Trading Investments 162 Available-for-Sale Investments 165 Valuation Allowance for Trading Investments 166 Valuation…
Prepare Hertog Company's journal entries to record the following transactions for the current year. May 7 Purchases Kraft bonds as a short-term investment in trading securities at a cost of $10,990. June 6 Sells its entire investment in Kraft bonds for $11,510 cash. View transaction list Journal entry worksheet 1 2 Purchases Kraft bonds as a short-term investment in trading securities at a cost of $10,990. Note: Enter debits before credits. Date May 07 Record entry General Journal Clear entry Debit Credit View general journal >
! Required information [The following information applies to the questions displayed below.] On December 31, Reggit Company held the following short-term investments in its portfolio of available-for-sale debt securities. Reggit had no short-term investments in its prior accounting periods. Available-for-Sale Securities Verrizano Corporation bonds Preble Corporation notes Lucerne Company bonds Prepare the December 31 adjusting entry to report these investments at fair value. General Journal Complete this question by entering your answers in the tabs below. Fair Value Adjustment Computation of fair value adjustment. Cost $ 68,000 49,000 64,000 Verrizano Corporation bonds Preble Corporation notes Lucerne Company bonds Total Fair Value Adjustment Computation - Available for Sale Portfolio Unrealized Amount Cost Fair Value $ 66,640 43,610 61,440 Fair Value $ 68,000 $ 66,640 49,000 43,610 64,000 61,440 $ 181,000 $ 171,690 Unrealized Loss
Journal entries for trading investments The investments of Charger Inc. include an investment of trading securities of Raiders Inc. purchased on February 24, 20Y7, for $216,000. The fair value of the securities on December 31, 20Y7, is $288,000. a. Journalize the entries for the February 24 purchase and the adjustment to fair value on December 31, 20Y7. If an amount box does not require an entry, leave it blank. 20Y7 Feb. 24 Accounting numeric field 20Y7 Dec. 31 Feedback Check My Work a. Increase the investment and reduce Cash for number of shares times the per share price. The unrealized gain (credit) or unrealized loss (debit) is the difference between the acquired per share price and the market price per share at 20Y7 taken times the number of shares acquired. The offset account for the gain or loss entry is the valuation allowance account. b. How is a unrealized gain or loss for trading investments reported on the financial statements? 00
Redemption of Bonds Payable On December 31, a $1,950,000 bond issue on which there is an unamortized discount of $70,500 is redeemed for $1,908,400. Required: Journalize the redemption of the bonds. Refer to the chart of accounts for the exact wording of the account titles. JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4
Heinz Company’s post-closing trial balance as of December 31, 2018, and the adjusted trial balance as of December 31, 2019, are shown here: A review of the accounting records reveals the following additional information: a. Bonds payable with a face value, book value, and market value of $14,000 were retired On June 30, 2019. b. Bonds payable with a face value of $8,000 were issued at 90.25 On August 1, 2019. They mature on August 1, 2024. The company uses the straight-line method to amortize the bond discount. c. The company sold a building that had an original cost of $8,000 and a book value of $4,800. The company received $2,200 in cash for the building and recorded a loss of $2,600. d. Equipment with a cost of $4,000 and a book value of $1,400 was exchanged for an acre of land valued at $2,700. No cash was exchanged. e.…
On December 31, Reggit Company held the following short-term investments in its portfolio of available-for-sale debt securities. Reggit had no short-term investments in its prior accounting periods. Available-for-Sale Securities Verrizano Corporation bonds Preble Corporation notes Lucerne Company bonds epare the December 31 adjusting entry to report these investments at fair value. Fair Value Adjustment Computation of fair value adjustment. Complete this question by entering your answers in the tabs below. General Journal Cost $ 76,000 57,000 72,000 Verrizano Corporation bonds Preble Corporation notes Lucerne Company bonds Total Fair Value Adjustment Computation - Available for Sale Portfolio Unrealized Amount Cost $ Fair Value $ 74,480 50,730 69,120 Fair Value 76,000 $ 74,480 57,000 50,730 72,000 69,120 $ 205,000 $ 194,330 CO
On January 1, Valuation Allowance for Available-for-Sale Investments had a zero balance. On December 31, the cost of the available-for-sale securities was $78,400, and the fair value was $72,330. Prepare the adjusting entry to record the unrealized gain or loss on available-for-sale investments on December 31. Refer to the Chart of Accounts for exact wording of account titles.
Recording Entries for Impairment of Investments-HTM Atlanta Inc. holds an HTM bond investment in Falcons Corporation. The carrying value of the investment is $112,400 on December 31. Atlanta Inc. determines the present value of the amounts expected to be collected under the debt contract under the CECL model to be $96,000. a. Record the impairment loss on December 31. Date Account Name Dec. 31 Loss on Impairment Investment Income Account Name ◆ Loss on Impairment ✓ x <) b. Assume that Atlanta Inc. holds the HTM bond investment in Falcons Corporation on December 31 of the following year. Record the adjusting entry if the present value of the amounts expected to be collected under the debt contract under the CECL model is now estimated to be $104,000. Date Dec. 31 Investment Income Dr. 16,400 ✓ 0✓ 수 x → x Dr. 8,000 Cr. 0✔ 0 16,400 Cr. 0 8,000