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of such securities. At December 31, these securities had a fair value of $72,000 1. Prepare the December 27 entry for the pur

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Exercise 15-4 Accounting for available-for-sale debt securities LO P3 Prepare Krum Cos journal entries to record the followi

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December 27

1. Investment a/c Dr. $72,000

To Cash a/c Cr. $ 72,000.

(Investment a/c debited with the fair market value of investments)

December 31

2.Fair Value adjustment - Available for sale Dr. $1,000

To Un realised Gain equity - Cr. $1,000

( Unrealised gain accounted)

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