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 Short term: ANC Corporation Totals Long term: Blair, Incorporated $ 492,000 456,000 $ 948,000 $ 399,000 492,000 $ 891,000 Drake Corporation Aaron Industries $ 492,000 714,000 $ 566,000 666,000 Totals $ 1,206,000 $ 1,232,000 Required: Unrealized Holding Gain (Loss) $ (93,000) 36,000 $ (57,000) $ 74,000 (48,000) $ 26,000 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?
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 Short term: ANC Corporation Totals Long term: Blair, Incorporated $ 492,000 456,000 $ 948,000 $ 399,000 492,000 $ 891,000 Drake Corporation Aaron Industries $ 492,000 714,000 $ 566,000 666,000 Totals $ 1,206,000 $ 1,232,000 Required: Unrealized Holding Gain (Loss) $ (93,000) 36,000 $ (57,000) $ 74,000 (48,000) $ 26,000 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?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...
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