Prepare the journal entry to record the sale of the available-for-sale debt securities in 2020. (Credit account titles are automaticallyindented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for theamounts)Account Titles and ExplanationDebitCredit On January 1, 2020, Wildhorse Inc. had the following balance sheet.WILDHORSE INC.BALANCE SHEETAS OF JANUARY 1, 2020AssetsCashDebt investments (available-for-sale)Total$54,300256,700$311,000Dividend revenueGain on sale of investmentsNet incomeWILDHORSE INC.INCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2020$5,50029,700$35,200EquityCommon stockAccumulated other comprehensive incomeTotalThe accumulated other comprehensive income related to unrealized holding gains on available-for-sale debt securities. The fair valueof Wildhorse Inc's available-for-sale debt securities at December 31, 2020, was $181,900; its cost was $128,800. No securities werepurchased during the year. Wildhorse Inc.'s income statement for 2020 was as follows. (Ignore income taxes.)$277,20033,800$311,000

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Prepare the journal entry to record the sale of the available-for-sale debt securities in 2020. (C

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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Question

Prepare the journal entry to record the sale of the available-for-sale debt securities in 2020. (Credit account titles are automatically
indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the
amounts)
Account Titles and Explanation
Debit
Credit

On January 1, 2020, Wildhorse Inc. had the following balance sheet.
WILDHORSE INC.
BALANCE SHEET
AS OF JANUARY 1, 2020
Assets
Cash
Debt investments (available-for-sale)
Total
$54,300
256,700
$311,000
Dividend revenue
Gain on sale of investments
Net income
WILDHORSE INC.
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2020
$5,500
29,700
$35,200
Equity
Common stock
Accumulated other comprehensive income
Total
The accumulated other comprehensive income related to unrealized holding gains on available-for-sale debt securities. The fair value
of Wildhorse Inc's available-for-sale debt securities at December 31, 2020, was $181,900; its cost was $128,800. No securities were
purchased during the year. Wildhorse Inc.'s income statement for 2020 was as follows. (Ignore income taxes.)
$277,200
33,800
$311,000

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