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 $ 508,000 464,000 $972,000 $ 500,000 706,000 $1,214,000 Fair Value $191,000 508,000 $ 899,000 $ 574,000 674,000 $1,248,000 Unrealized Holding Gain (Loss) $ (117,000) 44,000 $(73,000) $ 66,000 (32,000) $ 34,000 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 p result of the adjusting entry? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare appropriate adjusting entry at December 31, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required in the first account field.
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 $ 508,000 464,000 $972,000 $ 500,000 706,000 $1,214,000 Fair Value $191,000 508,000 $ 899,000 $ 574,000 674,000 $1,248,000 Unrealized Holding Gain (Loss) $ (117,000) 44,000 $(73,000) $ 66,000 (32,000) $ 34,000 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 p result of the adjusting entry? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare appropriate adjusting entry at December 31, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required in the first account field.
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.
Short term:
Blair, Incorporated
ANC Corporation
Totals
Long term:
Drake Corporation
Aaron Industries
Totals
Cost
Required 2
$ 508,000
464,000
$ 972,000
$ 500,000
706,000
$1,214,000
Fair Value
$191,000
508,000
$899,000
$ 574,000
674,000
$1,248,000
Unrealized Holding
Gain (Loss)
$ (117,000)
44,000
$(73,000)
$ 66,000
(32,000)
$ 34,000
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 presult of the adjusting entry?
Complete this question by entering your answers in the tabs below.
Required 11
Prepare appropriate adjusting entry at December 31, 2024.
Note: If no entry is required for a transaction/event, select "No journal entry required in the first account field.
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