Loreal-American Corporation purchased several marketable securities during 2024. At December 31, 2024, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2023, and all are considered securities available-for-sale. Short term: Blair, Incorporated ANC Corporation Totals Long term: Drake Corporation Aaron Industries Totals Cost $ 496,000 458,000 $ 954,000 $ 496,000 712,000 $ 1,208,000 Fair Value $ 397,000 496,000 $ 893,000 $ 568,000 668,000 $ 1,236,000 Unrealized Holding Gain (Loss) $ (99,000) 38,000 $ (61,000) $ 72,000 (44,000) $ 28,000 Required: 1. Prepare appropriate adjusting entry at December 31, 2024. 2. What amount would be reported in the income statement at December 31, 2024, as a result of the adjusting entry? Anwar is not complete

Loreal-American Corporation purchased several marketable securities during 2024. At December 31, 2024, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2023, and all are considered securities available-for-sale. Short term: Blair, Incorporated ANC Corporation Totals Long term: Drake Corporation Aaron Industries Totals Cost $ 496,000 458,000 $ 954,000 $ 496,000 712,000 $ 1,208,000 Fair Value $ 397,000 496,000 $ 893,000 $ 568,000 668,000 $ 1,236,000 Unrealized Holding Gain (Loss) $ (99,000) 38,000 $ (61,000) $ 72,000 (44,000) $ 28,000 Required: 1. Prepare appropriate adjusting entry at December 31, 2024. 2. What amount would be reported in the income statement at December 31, 2024, as a result of the adjusting entry? Anwar is not complete

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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Loreal-American Corporation purchased several marketable securities during 2024. At December 31, 2024, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2023, and all are considered securities available-for-sale. Cost Fair Value Unrealized Holding Gain (Loss) Short term: Blair, Incorporated $ 516,000 $ 387,000 $ (129,000) ANC Corporation 468,000 516,000 48,000 Totals $ 984,000 $ 903,000 $ (81,000) Long term: Drake Corporation $ 516,000 $ 578,000 $ 62,000 Aaron Industries 702,000 678,000 (24,000) Totals $ 1,218,000 $ 1,256,000 $ 38,000 Required: Prepare appropriate adjusting entry at December 31, 2024. What amount would be reported in the income statement at December 31, 2024, as a result of the adjusting entry?
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