Answer -
Adjusting entry at the year end
Date | General Journal | Debit ($) | Credit ($) |
Dec 31 |
Unrealized loss--Equity [$77000 - $64300] Fair value adjustment--Available for sale |
12700 - |
- 12700 |
During the current year, Reed Consulting Group acquired long-term available-for-sale securities at a $77,000 cost. At...
During the current year, Reed Consulting acquired long-term available-for-sale debt securities on July 1 at a $86,000 cost. At its December 31 year-end, these securities had a fair value of $72,400. This is the first and only time the company purchased such securities. Required: 1. Prepare the July 1 entry to record the purchase of these debt securities. 2. Prepare the year-end adjusting entry related to these securities.
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Exercise 12-10 (Algo) Available-for-sale securities [LO12-1, 12-4) Tanner-UNF Corporation acquired as a long-term investment $260 million of 7% bonds, dated July 1, on July 1, 2021 Company management has classified the bonds as an available for sale investment. The market interest rate yield) was 9% for bonds of similar risk and maturity. Tanner-UNF paid $220 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair...
Kitty Company began operations in the current year and acquired short-term debt investments in trading securities. The year-end cost and fair values for its portfolio of these debt investments follow Portfolio of Trading Securities (thousands) Tesla Bonds Nike Bonds Tord Bonds Cost Fair Value $12 Prepare journal entries to record the December 31 year-end fair value adjustment for the above debt securities. (Enter your answers in thousands of dollars.) View transaction list Journal entry worksheet Record the year-end adjustment to...