Required information [The following information applies to the questions displayed below.] On December 31, Reggit Company held the following short-term investments in its portfolio of available-for-sale debt securities. Reggit had no short-term investments in its prior accounting periods. Available-for-Sale Securities Verrizano Corporation bonds Preble Corporation notes Lucerne Company bonds Prepare the December 31 adjusting entry to report these investments at fair value. General Journal Complete this question by entering your answers in the tabs below. Fair Value Adjustment Computation of fair value adjustment. Cost $ 68,000 49,000 64,000 Verrizano Corporation bonds Preble Corporation notes Lucerne Company bonds Total Fair Value Adjustment Computation - Available for Sale Portfolio Unrealized Amount $ Cost Fair Value $ 66,640 43,610 61,440 Fair Value 68,000 $ 66,640 49,000 43,610 64,000 61,440 $ 181,000 $ 171,690 Unrealized Loss
Required information [The following information applies to the questions displayed below.] On December 31, Reggit Company held the following short-term investments in its portfolio of available-for-sale debt securities. Reggit had no short-term investments in its prior accounting periods. Available-for-Sale Securities Verrizano Corporation bonds Preble Corporation notes Lucerne Company bonds Prepare the December 31 adjusting entry to report these investments at fair value. General Journal Complete this question by entering your answers in the tabs below. Fair Value Adjustment Computation of fair value adjustment. Cost $ 68,000 49,000 64,000 Verrizano Corporation bonds Preble Corporation notes Lucerne Company bonds Total Fair Value Adjustment Computation - Available for Sale Portfolio Unrealized Amount $ Cost Fair Value $ 66,640 43,610 61,440 Fair Value 68,000 $ 66,640 49,000 43,610 64,000 61,440 $ 181,000 $ 171,690 Unrealized Loss
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information
[The following information applies to the questions displayed below.]
On December 31, Reggit Company held the following short-term investments in its portfolio of available-for-sale debt
securities. Reggit had no short-term investments in its prior accounting periods.
Available-for-Sale Securities
Verrizano Corporation bonds
Preble Corporation notes
Lucerne Company bonds
Prepare the December 31 adjusting entry to report these investments at fair value.
General
Journal
Complete this question by entering your answers in the tabs below.
Fair Value
Adjustment
Computation of fair value adjustment.
Cost
$ 68,000
49,000
64,000
Verrizano Corporation bonds
Preble Corporation notes
Lucerne Company bonds
Total
Fair Value Adjustment Computation - Available for Sale Portfolio
Unrealized
Amount
Cost
Fair Value
$ 66,640
43,610
61,440
Fair Value
$ 68,000 $ 66,640
49,000
43,610
64,000
61,440
$ 181,000 $ 171,690
Unrealized Loss](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcba5c243-d3c4-478f-8b27-e10a19198737%2Fd7124730-f412-47f9-a66c-bec465dfcf3b%2Fohsfdxo_processed.png&w=3840&q=75)
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Required information
[The following information applies to the questions displayed below.]
On December 31, Reggit Company held the following short-term investments in its portfolio of available-for-sale debt
securities. Reggit had no short-term investments in its prior accounting periods.
Available-for-Sale Securities
Verrizano Corporation bonds
Preble Corporation notes
Lucerne Company bonds
Prepare the December 31 adjusting entry to report these investments at fair value.
General
Journal
Complete this question by entering your answers in the tabs below.
Fair Value
Adjustment
Computation of fair value adjustment.
Cost
$ 68,000
49,000
64,000
Verrizano Corporation bonds
Preble Corporation notes
Lucerne Company bonds
Total
Fair Value Adjustment Computation - Available for Sale Portfolio
Unrealized
Amount
Cost
Fair Value
$ 66,640
43,610
61,440
Fair Value
$ 68,000 $ 66,640
49,000
43,610
64,000
61,440
$ 181,000 $ 171,690
Unrealized Loss
Expert Solution
Step 1
A fair value adjustment is a type of accounting process that permits reevaluation of the fair value when there is a significant difference between the fair value and the asset's current book value. Fair value is the anticipated price at which an item will be bought or sold when the buyer and seller willingly agree on a price.
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