Question

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. 12
Year 1 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  .

Answer 1

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