Fair Value Journal Entries, Available-for-Sale Investments
The investments of Steelers Inc. include a single investment: 11,600 shares of Bengals Inc. common stock purchased on September 12, 20Y7, for $10 per share including brokerage commission. These shares were classified as available-for-sale securities. As of the December 31, 20Y7, balance sheet date, the share price declined to $8 per share.
a. Journalize the entries to acquire the investment on September 12, and record the adjustment to fair value on December 31, 20Y7.
20Y7 Sept. 12 | |||
20Y7 Dec. 31 | |||
b. How is the unrealized gain or loss for available-for-sale investments disclosed on the financial statements?
Unrealized Gain (Loss) on Available-for-Sale Investments is reported in the of the .
Available for-sale securities are the debt and equity securities that are neither classified as held-to-maturity or fair value through profit or loss. They are initially recorded at fair value and subsequently at each reporting date, these are premeasured and recognised at fair value. Unrealised gain or loss is reported as a separate component of stockholder's equity under the head other comprehensive income. When the securities are sold, the unrealised gain or loss removed from comprehensive income and recognised in the income statement.
Fair Value Journal Entries, Available-for-Sale Investments The investments of Steelers Inc. include a single investment: 11,600...
Fair Value Journal Entries, Available-for-Sale Investments The investments of Steelers Inc. include a single investment: 11,900 shares of Bengals Inc. common stock purchased on September 12, Year 1, for $12 per share including brokerage commission. These shares were classified as available-for-sale securities. As of the December 31, Year 1, balance sheet date, the share price declined to $9 per share. a. Journalize the entries to acquire the investment on September 12 and record the adjustment to fair value on December...
Fair Value Journal Entries, Available-for-Sale Investments The investments of Steelers Inc. include a single investment: 10,000 shares of Bengals Inc. common stock purchased on September 12, Year 1, for $13 per share including brokerage commission. These shares were classified as available-for-sale securities. As of the December 31, Year 1, balance sheet date, the share price declined to $10 per share. a. Journalize the entries to acquire the investment on September 12 and record the adjustment to fair value on December...
The investments of Steelers Inc. include a single investment: 11,300 shares of Bengals Inc. common stock purchased on September 12, Year 1, for $15 per share including brokerage commission. These shares were classified as available-for-sale securities. As of the December 31, Year 1, balance sheet date, the share price declined to $12 per share. a. Journalize the entries to acquire the investment on September 12 and record the adjustment to fair value on December 31, Year 1. Year 1 Sept....
Fair Value Journal Entre Available for sale investments The investments of Steelers the include single mestment 11.000 theres of Bengals the common stock purchaund on September 17, rear for 350 persone cluding brokerage common These shares were d ied as v etor sales As of the December 31, Year 1, balance sheet dat w e declined to share 2. Journalise the entries to acquire the investment on September 12 and record the adjustment to far value on December 31 Year...
Fair Value Journal Entries, Available for Sale Investments The Investments of Steelers Inc. Indude a single investment 5400,000 of Bengals Inc. 5 bonds purchased at 100 on January 1, 2017. These bonds were classified as available for sale securities. As of the December 31, 2017, balance sheet date, the fair value of the bonds declined to $392,800. a. Journalize the entries to acquire the investment on January 1, 2017, and record the adjustment to fair value on December 31, 2017....
Fair Value Journal Entries, Available for Sale Investments The investments of Steders Inc. Include a single investment: 13,200 shares of Bengals Inc. common stock purchased on September 12, Year 1, for $10 per share including brokerage commission. These shares were classified as available for sale securities. As of the December 31, Year 1, balance sheet date, the share price declined to $7 per share. a. Journalize the entries to acquire the investment on September 12 and record the adjustment to...
al Value Journal Entries, Trading Investments The investments of Charger Inc. Indude a single investment: 8,000 shares of Raiders, Inc. common stock purchased on February 24, Year 1, for $41 per share induding brokerage commission. These shares were classified as trading securities. As of the December 31, Year 1, balance sheet date, the share price increased to 554 per share. Journalize the entries to acquire the investment on February 24, and record the adjustment to fair value on December 31,...
Fair Value Journal Entries, Trading Investments The investments of Charger Inc. include a single investment: 18,500 shares of Raiders Inc. common stock purchased on February 24, 20Y1, for $46 per share including brokerage commission. These shares were classified as trading securities. As of the December 31, 20Y1, balance sheet date, the share price had increased to $52 per share. a. Journalize the entries to acquire the investment on February 24, and record the adjustment to fair value on December 31,...
Fair Value Journal Entries, Available-for-Sale Investments Hurricane Inc. purchased a portfolio of available-for-sale securities in Year 1, its first year of operations. The cost and fair value of this portfolio on December 31, Year 1, was as follows: Name Number of Shares Total Cost Total Fair Value Tornado Inc. 1,250 $16,750 $18,590 Tsunami Corp. 700 22,960 25,030 Typhoon Corp. 200 6,400 6,080 Total $46,110 $49,700 On June 12, Year 2, Hurricane purchased 600 shares of Rogue Wave Inc. at $32...
The investments of Charger Inc. include a single investment: 18,440 shares of Raiders Inc. common stock purchased on February 24, Year 1, for $37 per share including brokerage commission. These shares were classified as trading securities. As of the December 31, Year 1, balance sheet date, the share price had increased to $45 per share. Required: A. Journalize the entries to acquire the investment on February 24, and record the adjustment to fair value on December 31, Year 1. Refer...