preal-American Corporation purchased several marketable securities during 2018. At December 31, 2018, the company had the vestments in bonds listed below. None was held at the last reporting date, December 31, 2017, and all are considered securities vailable-for-sale. Short term: Blair, Inc. ANC Corporation Totals Long term: Drake Corporation Aaron Industries Totals Cost Fair Value $ 520,000 $385,000 470,000 520,000 $ 990,000 $ 905,000 $ 520,000 $ 580,000 700,000 680,000 $1,220,000 $1,260,000 Unrealized Holding Gain (Loss) $(135,000) 50,000 $ (85,000) $ 60,000 (20,000) $ 40,000 equired: Prepare appropriate adjusting entries at December 31, 2018. (If no entry is required for a transaction/event, select "No journal ntry required" in the first account field.)
preal-American Corporation purchased several marketable securities during 2018. At December 31, 2018, the company had the vestments in bonds listed below. None was held at the last reporting date, December 31, 2017, and all are considered securities vailable-for-sale. Short term: Blair, Inc. ANC Corporation Totals Long term: Drake Corporation Aaron Industries Totals Cost Fair Value $ 520,000 $385,000 470,000 520,000 $ 990,000 $ 905,000 $ 520,000 $ 580,000 700,000 680,000 $1,220,000 $1,260,000 Unrealized Holding Gain (Loss) $(135,000) 50,000 $ (85,000) $ 60,000 (20,000) $ 40,000 equired: Prepare appropriate adjusting entries at December 31, 2018. (If no entry is required for a transaction/event, select "No journal ntry required" in the first account field.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please explain proper steps by Step and Do Not Give Solution In Image Format ? And Fast Answering Please ?
Transcribed Image Text:1
Record the adjusting entry for December 31, 2018.
Note: Enter debits before credits.
Amount
Event
1
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
. What amounts would be reported in the income statement at December 31, 2018, as a result of these adjusting entries?
Transcribed Image Text:Loreal-American Corporation purchased several marketable securities during 2018. At December 31, 2018, the company had the
investments in bonds listed below. None was held at the last reporting date, December 31, 2017, and all are considered securities
available-for-sale.
Short term:
Blair, Inc.
ANC Corporation
Totals
Long term:
Drake Corporation
Aaron Industries
Totals
$ 520,000
470,000
$
Cost
$
Fair Value
385,000
520,000
990,000 $ 905,000
520,000 $ 580,000
700,000 680,000
$1,220,000 $1,260,000
Unrealized Holding
Gain (Loss)
$(135,000)
50,000
$ (85,000)
$
60,000
(20,000)
40,000
Required:
1. Prepare appropriate adjusting entries at December 31, 2018. (If no entry is required for a transaction/event, select "No journal
entry required" in the first account field.)
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