Stone has provided the following information on its available-for-sale securities:
Stone has provided the following information on its available-for-sale securities:
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...
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![Stone has provided the following information on
its available-for-sale securities:
Amortized cost as of 12/31/X1: $170,000
Unrealized gain as of 12/31/X1: 4,000
Unrealized losses as of 12/31/X1: 26,000
Net realized gains during 20X1: 30,000
Prior to recording the fair value adjustment for
20X1, there was a $1,500 credit balance in the
contra-asset valuation account.
Required:
What is the journal entry in 20X1 to record the
change in value of the available-for-sale
portfolio? (Ignore taxes](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6ed36922-6fdc-4573-8f6a-92a12e8cc77f%2Fb17f9541-8a2c-4c38-894a-6b7c0bad3776%2Fui2g0xc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Stone has provided the following information on
its available-for-sale securities:
Amortized cost as of 12/31/X1: $170,000
Unrealized gain as of 12/31/X1: 4,000
Unrealized losses as of 12/31/X1: 26,000
Net realized gains during 20X1: 30,000
Prior to recording the fair value adjustment for
20X1, there was a $1,500 credit balance in the
contra-asset valuation account.
Required:
What is the journal entry in 20X1 to record the
change in value of the available-for-sale
portfolio? (Ignore taxes
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