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Brief Exercise 12-5 (Algo) Available-for-sale securities [LO12-4) S&L Financial buys and sells securities which it classifies
Journal entry worksheet < 1 2 3 4 Record the entry to adjust to fair value on the date of sale. .:02 Note: Enter debits befor
Journal entry worksheet < 1 N 3 Record the entry to reverse the previous fair value adjustment. 51 Note: Enter debits before
Journal entry worksheet < 1 2 3 4 TTTTTTT > Record the entry for sale of Investment in Coca Cola bonds. 40 Note: Enter debits
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Answer #1
Journal entry on 31st Dec 2021
Unrealized gain and loss Dr 7000
Securitie Account Cr 7000
(journal entry to account books to show correct FMV for securities n 31st Dec 2020)
Journal entry on 3rd Jan 2022 Securitie Account Dr 7000
Unrealized gain and loss CR 7000
(Reversal entry for accounted unrealized gain and loss for Dec 31st 2021)
Journal entry on 3rd Jan 2022
AR Dr 900000
Securitie Account Cr 900000
Entry Sales accounted as collectable from receiver)
27-Dec-2021 Purchase value 892000
03-Jan-2022 Sold 900000
31-Dec-2021 Fair Market Value 885000
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