S&L Financial buys and sells securities expecting to earn profits on short-term differences in price. Assume that on December 27, 2024, S&L purchased Coca-Cola bonds at par for $889,000 and sold the bonds on January 3, 2025, for $898,500. At December 31, the bonds had a fair value of $880,000. Prepare journal entries to record (a) any unrealized gains or losses occurring in 2024 and (b) the sale of the bonds in 2025. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list View journal entry worksheet No 1 2 Date December 31, 2024 January 03, 2025 General Journal Loss on investments (unrealized, NI) Fair value adjustment Gain on investments (unrealized, NI) Debit 9,000 0 Credit 9,000 0 Ⓒ

S&L Financial buys and sells securities expecting to earn profits on short-term differences in price. Assume that on December 27, 2024, S&L purchased Coca-Cola bonds at par for $889,000 and sold the bonds on January 3, 2025, for $898,500. At December 31, the bonds had a fair value of $880,000. Prepare journal entries to record (a) any unrealized gains or losses occurring in 2024 and (b) the sale of the bonds in 2025. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list View journal entry worksheet No 1 2 Date December 31, 2024 January 03, 2025 General Journal Loss on investments (unrealized, NI) Fair value adjustment Gain on investments (unrealized, NI) Debit 9,000 0 Credit 9,000 0 Ⓒ

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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