Stone has provided the following information onits available-for-sale securities:Amortized cost as of 12/31/X1: $170,000Unrealized gain as of 12/31/X1: 4,000Unrealized losses as of 12/31/X1: 26,000Net realized gains during 20X1: 30,000Prior to recording the fair value adjustment for20X1, there was a $1,500 credit balance in thecontra-asset valuation account.Required:What is the journal entry in 20X1 to record thechange in value of the available-for-saleportfolio? (Ignore taxes

Mark-to-market helps in valuing accounts at fair value which changes with passage of time. These…

Answered: Stone has provided the following…

Business

Accounting

Stone has provided the following information on its available-for-sale securities:

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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Question

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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