Stanley Dodge  Corporation bought several marketable securities during 2020. At December 31, 2020, the company possessed investments in bonds listed below. All are considered securities available-for-sale. At January 1, 2020, the Corporation's Fair Value Adjustment Account had a credit balance of $150,000.   Cost Fair Value Unrealized Holding Gain(Loss) Short Term:              Ashkent, Inc $1,100,000 $1,300,000          Imagen Pharma 1,200,000 1,150,000   Total       Long term:            Erdinger Foods $2,000,000 $1,980,000   Ashanti Gold          1,500,000                     1,750,000   Total       Prepare the adjusting entries for December 31, 2020. Show how you arrived at the balance needed for the Fair Value Adjustment on 12/31/2020.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Stanley Dodge  Corporation bought several marketable securities during 2020. At December 31, 2020, the company possessed investments in bonds listed below. All are considered securities available-for-sale. At January 1, 2020, the Corporation's Fair Value Adjustment Account had a credit balance of $150,000.

  Cost Fair Value Unrealized Holding Gain(Loss)
Short Term:      
       Ashkent, Inc $1,100,000 $1,300,000  
       Imagen Pharma 1,200,000 1,150,000  
Total      
Long term:      
     Erdinger Foods $2,000,000 $1,980,000  
Ashanti Gold          1,500,000                     1,750,000  
Total      

Prepare the adjusting entries for December 31, 2020. Show how you arrived at the balance needed for the Fair Value Adjustment on 12/31/2020.

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