Hw.36. 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 ExplanationDebitCredit109 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$311,000WILDHORSE INC.INCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2020Dividend revenueGain on sale of investmentsNet income$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

Available-for-sale securities seem to be the standard classification of securities in which firms…

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

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

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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