Question

ClB GRADED HV x Exercise 17-9 At urses/28520/assignments/3247325 x C Sign In or Sign U x G At December 31 x At December 31, 2020, the available-for-sale debt securities for Storrer, Inc. are as follows. The securities are considered to be a long-term investment Security Cost Fair Value A $17,500 $16,000 12,500 14,000 C 23,000 21,000 $53,000 $51,000 B Your answer is partially correct. Prepare the adjusting entry at December 31, 2020, to report the securities at fair value. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts) Debit Credit Date Account Titles and Explanation 2000 Dec. 31 Unrealized Gain or Loss-Equity 2000 Fair Value Adjustment-Trading eTextbook and Media List of Accounts Your answer is partially correct

Answer 1

Ansever Page No ③ © Agusting entry wat dech. 2000 to report the c ities and their value Onicalized gain or lons-equity = $53000 - $51000 = $2000 Particulars Debit I Coedit Unrealized gain or loss - equity $2000 Fair value adjustment – available for sale $2000 @ Balance sheet (Partial) Particular Amount Debt investment at fair value 51000 other comprehensive Pincome Ressi unrealized loss on available for sale securities ($ 2000) No entry is recorded is income statement Ondes available for sale securities the unrealized loss can be reported in other comprehensive income without impa -cting the income statements.