Novak Company has the following investments as of December 31, 2020:Investments in common stock of Laser Company $1,350,000Investment in debt securities of FourSquare Company $3,280,000In both investments, the carrying value and the fair value of these two investments are the same at December 31, 2020. Novak’s stock investments does not result in significant influence on the operations of Laser Company. Novak’s debt investment is considered held-to-maturity. At December 31, 2021, the shares in Laser Company are valued at $950,000; the debt investment securities of FourSquare are valued at $2,460,000 and are considered impaired. PLEASE HELP WITH THE ENTRY THANK YOU. **Financial Recording Exercise** *Assumption Scenario:* - Fair value of Laser shares: $1,250,000 - Value of debt investment: $2,920,000 **Task:** Determine the required entries, if any, to be recorded in 2022.**Instructions:** - Credit account titles are automatically indented when an amount is entered. Do not manually indent.- If no entry is necessary, select "No Entry" for the account titles and enter 0 for the amounts.### Recording Table:| Date | Account Titles and Explanation | Debit | Credit ||------------|--------------------------------|-------|--------|| Dec. 31, 2022 | No Entry | 0 | || | No Entry | | 0 |*Note: This exercise involves analyzing whether any entries need to be recorded based on the fair value assessment of investments.*

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Answered: Novak Company has the following…

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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Novak Company has the following investments as of December 31, 2020:

Investments in common stock of Laser Company		$1,350,000
Investment in debt securities of FourSquare Company		$3,280,000

In both investments, the carrying value and the fair value of these two investments are the same at December 31, 2020. Novak’s stock investments does not result in significant influence on the operations of Laser Company. Novak’s debt investment is considered held-to-maturity. At December 31, 2021, the shares in Laser Company are valued at $950,000; the debt investment securities of FourSquare are valued at $2,460,000 and are considered impaired.

PLEASE HELP WITH THE ENTRY THANK YOU.

**Financial Recording Exercise**
*Assumption Scenario:*
- Fair value of Laser shares: $1,250,000
- Value of debt investment: $2,920,000

**Task:**
Determine the required entries, if any, to be recorded in 2022.

**Instructions:**
- Credit account titles are automatically indented when an amount is entered. Do not manually indent.
- If no entry is necessary, select "No Entry" for the account titles and enter 0 for the amounts.

### Recording Table:

| Date | Account Titles and Explanation | Debit | Credit |
|------------|--------------------------------|-------|--------|
| Dec. 31, 2022 | No Entry | 0 | |
| | No Entry | | 0 |

*Note: This exercise involves analyzing whether any entries need to be recorded based on the fair value assessment of investments.*

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