Date |
Accounts title and explanation |
Debit ($) |
Credit ($) |
Dec-31-2018 |
Unrealized holding loss on AFS investments-OCI ($878,000 - $885,000) |
7,000 |
|
Fair value adjustment |
7,000 |
||
(To record the fair value adjustment) |
|||
03-Jan-2019 |
Fair value adjustment |
14,500 |
|
Unrealized holding gain on AFS investments-OCI ($892,500 - $878,000) |
14,500 |
||
(To record the fair value adjustment) |
|||
03-Jan-2019 |
Reclassification adjustment-OCI ($14,500 - $7,000) |
7,500 |
|
Fair value adjustment |
7,500 |
||
(To reverse the previous fair value adjustment) |
|||
03-Jan-2019 |
Cash |
892,500 |
|
Gain on investments |
7,500 |
||
Investment in coco cola bonds |
885,000 |
||
(To record the sale of investments in coco cola bonds) |
S&L Financial buys and sells securities which it classifies as available-for-sale. On December 27, 2018, S&L...
S&L Financial buys and sells securities which it classifies as available-for-sale. On December 27, 2018, S&L purchased Coca-Cola bonds at par for $892,000 and sold the bonds on January 3, 2019, for $895,500. At December 31, the bonds had a fair value of $889,000, and S&L has the intent and ability to hold the investment until fair value recovers. Prepare journal entries to record (a) any unrealized gains or losses occurring in 2018 and (b) the sale of the bonds...
Brief Exercise 12-5 Available-for-sale securities [LO12-4] S&L Financial buys and sells securities which it classifies as available-for-sale. On December 27, 2018, S&L purchased Coca-Cola bonds at par for $875,000 and sold the bonds on January 3, 2019, for $880,000. At December 31, the bonds had a fair value of $873,000, and S&L has the intent and ability to hold the investment until fair value recovers. Prepare journal entries to record (a) any unrealized gains or losses occurring in 2018 and...
Question 1: S&L Financial buys and sells securities which it classifies as available-for-sale. On December 27, 2021, S&L purchased Coca-Cola bonds at par for $883,000 and sold the bonds on January 3, 2022, for $890,000. At December 31, the bonds had a fair value of $877,000, and S&L has the intent and ability to hold the investment until fair value recovers. Prepare journal entries to record (a) any unrealized gains or losses occurring in 2021 and (b) the sale of...
1) Record the entry for fair value adjustment of December 31, 2021. 2)Record the entry to adjust to fair value on the date of sale 3) Record the entry to reverse the previous fair value adjustment. 4) Record the entry for sale of investment in Coca Cola bonds. S&L Financial buys and sells securities which it classifies as available for sale. On December 27 2021. S&L purchased Coca-Cola bonds at par for $885,000 and sold the bonds on January 3,...
Brief Exercise 12-5 (Algo) Available-for-sale securities [LO12-4) S&L Financial buys and sells securities which it classifies as available for sale On December 27, 2021, S&L purchased Coca-Cola bonds at par for $892,000 and sold the bonds on January 3, 2022 for $900,000. At December 31, the bonds had a fair value of 5885,000, and S&L has the intent and ability to hold the investment until fair value recovers. Prepare journal entries to record (a) any unrealized gains or losses occurring...
S&L Financial buys and sells securities which it classifies as available for sale. On December 27, 2018, S&L purchased Coca-Cola bonds at par for $775,000 and sold the bonds on January 3, 2019, for $779,500. At December 31, the bonds had a fair value of $771,500, and S&L has the intent and ability to hold the investment until fair value recovers. What pretax amounts did S&L include in its 2018 and 2019 net income as a result of this investment?...
S&L Financial buys and sells securities expecting to earn profits on short-term differences in price. On December 27, 2021, S&L purchased Coca-Cola bonds at par for $886,000 and sold the bonds on January 3, 2022, for $892,500. At December 31, the bonds had a fair value of $882,000. Prepare journal entries to record (a) any unrealized gains or losses occurring in 2021 and (b) the sale of the bonds in 2022. (If no entry is required for a transaction/event, select...
S&L Financial buys and sells securities which it classifies as available-for-sale. On December 27, 2016 S&L purchased Coca-Cola common shares for $745,000 and sold the shares on January 3, 2017, for $748,500. At December 31, the shares had a fair value of $742,500, and S&L has the intent and ability to hold the investment until fair value recovers What pretax amounts did S&L include in its 2016 and 2017 earnings as a result of this investment? Pretax amount 2016 2017...
S&L Financial buys and sells securities expecting to earn profits on short-term differences in price. On December 27, 2021, S&L purchased Coca-Cola bonds at par for $886,000 and sold the bonds on January 3, 2022, for $892,500. At December 31, the bonds had a fair value of $882,000. Prepare journal entries to record (a) any unrealized gains or losses occurring in 2021 and (b) the sale of the bonds in 2022. (If no entry is required for a transaction/event, select "No...
S&L Financial buys and sells securities expecting to earn profits on short-term differences in price. On December 27, 2021, S&L purchased Coca-Cola bonds at par for $875,000 and sold the bonds on January 3, 2022, for $880,000. At December 31, the bonds had a fair value of $873,000. Prepare journal entries to record (a) any unrealized gains or losses occurring in 2021 and (b) the sale of the bonds in 2022. (If no entry is required for a transaction/event, select...