Few points to be noted
Working
AFS securities purchased = $700,000
Fair value as on 31st December = $725,000
So AFS securites should be revalued on 31st December , and now AFS securities book value is = $725,000
now, diffrence of $25,000 will go to Unrealised Gain - Other comprehensive income (OCI)
on 3rd January Journal enry would be
Cash/Bank...................................................Dr.
$737,000
Unrealised Gain - OCI.................................Dr.
$25,000
To Realised Gain on AFS securities.......Cr. $37,000
To AFS Securites Cr. $725,000
Hence Amount included in OCI in 2022 would be - $25,000
Debit.
Thanks
Lang Corporation buys and sells debt securities which it classifies as available-for-sale securities. The company's fiscal...
Lang Corporation buys and sells debt securities which it classifies as available-for-sale securities. The company's fiscal year ends on December 31. On December 27, 2021, Lang purchased Northwest Communications bonds at par for $550,000. At December 31, the bonds had a fair value of 574,000. On January 3, 2022, the bonds were sold for $590,000. The amount included in 2022 Lang's other comprehensive income as a result of this investment would be: (Do not add dollar sign; do not odd comma...
Freedom Corporation buys and sells debt securities which it classifies as trading securities. The company's fiscal year ends on December 31. On December 27, 2021, Freedom purchased Western Communications bonds at par for $700,000. At December 31, the bonds had a fair value of 725,000. On January 3, 2022, the bonds were sold for $737,000. The amount included in 2021 net income as a result of this investment would be: (Do not add dollar sign; do not add comma by...
10 points Save Answer Sunshine Corporation buys and sells debt securities which it classifies as trading securities. The company's fiscal year ends on December 31. On December 27, 2021. Sunshine purchased Northern Communications bonds at par for $700,000. At December 31, the bonds had a fair value of 725,000. On January 3, 2022, the bonds were sold for $737,000. The amount included in 2022 net income as a result of this investment would be: (Do not add dollar sign; do...
Freedom Corporation buys and sells debt securities which it classifies as trading securities. The company's fiscal year ends on December 31. On December 27, 2021, Freedom purchased Western Communications bonds at par for $550,000. At December 31, the bonds had a fair value of 565,000. On January 3, 2022, the bonds were sold for $584,000. The amount included in 2021 Freedom's net income as a result of this investment would be: (Do not add dollar sign; do not add comma by...
James Corp. buys and sells debt securities which it classifies as available-for-sale securities. The company's fiscal year ends on Dec. 31. On Dec. 27,2021, James purchased Northwest Communications bonds at par for $1,000. At Dec. 31, the bonds had a fair value of $1200. On Jan. 3, 2022, the bonds were sold for $3000. The amount included in 2022 Jame's other comprehensive income as a result of this investment would be?
Sandy Corporation buys and sells debt securities which it classifies as trading securities.The company's fiscal year ends on December 31.On Decenber 27,2021,Sandy purchased Northern Communications bonds at par for$500,000.At December 31,the bonds had a fair value of 574,000.On January 3,2022,the bonds were sold for$607,000.The amount included in 2022 net income as a result of this investment would be:
Sun Corporation buys and sells debt securities which it classifies as trading securities.The company's fiscal year ends on December 31.On Decenber 27,2021,Sun purchased Northern Communications bonds at par for$500,000.At December 31,the bonds had a fair value of 574,000.On January 3,2022,the bonds were sold for$607,000.The amount included in 2022 net income as a result of this investment would be:
Sun Corporation buys and sells debt securities which it classifies as trading securities.The company's fiscal year ends on December 31.On Decenber 27,2021,Sunshine purchased Northern Communications bonds at par for$520,000.At December 31,the bonds had a fair value of 574,000.On January 3,2022,the bonds were sold for$607,000.The amount included in 2022 net income as a result of this investment would be:
Silver Corp. buys and sells debt securities which it classifies as trading securities. The company's fiscal year ends on Dec. 31. On Dec. 27, 2021. Silver purchased James Communications bonds at par for $100. At Dec. 31, the bonds had a fair value of $200. On Jan. 3,2022 the bonds were sold for $250. The amount included in 2021 Silver' net income as a result of this investment would be:
Golden Financial buys and sells securities which it classifies as available-for-sale. On December 31, 2020, a bond had an amortized cost of $96,000 and fair value of $97,000. Differences between cost and market values are considered to be temporary. The change in market value was properly accounted for at December 31, 2020. On December 31, 2021, the bond has an amortized cost of $96,000 and the bond's fair value is now $92,000. The amount included in 2021 other comprehensive income...