Loreal-American Corporation purchased several marketable securities during 2024. At December 31, 2024, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2023, and all are considered securities available-for-sale. Cost Fair Value Short term: ANC Corporation Totals Long term: Blair, Incorporated $ 492,000 456,000 $ 948,000 $ 399,000 492,000 $ 891,000 Drake Corporation Aaron Industries $ 492,000 714,000 $ 566,000 666,000 Totals $ 1,206,000 $ 1,232,000 Required: Unrealized Holding Gain (Loss) $ (93,000) 36,000 $ (57,000) $ 74,000 (48,000) $ 26,000 1. Prepare appropriate adjusting entry at December 31, 2024. 2. What amount would be reported in the income statement at December 31, 2024, as a result of the adjusting entry?

Loreal-American Corporation purchased several marketable securities during 2024. At December 31, 2024, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2023, and all are considered securities available-for-sale. Cost Fair Value Short term: ANC Corporation Totals Long term: Blair, Incorporated $ 492,000 456,000 $ 948,000 $ 399,000 492,000 $ 891,000 Drake Corporation Aaron Industries $ 492,000 714,000 $ 566,000 666,000 Totals $ 1,206,000 $ 1,232,000 Required: Unrealized Holding Gain (Loss) $ (93,000) 36,000 $ (57,000) $ 74,000 (48,000) $ 26,000 1. Prepare appropriate adjusting entry at December 31, 2024. 2. What amount would be reported in the income statement at December 31, 2024, as a result of the adjusting entry?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...

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Loreal-American Corporation purchased several marketable securities during 2024. At December 31, 2024, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2023, and all are considered securities available-for-sale. Cost Fair Value Unrealized Holding Gain (Loss) Short term: Blair, Incorporated $ 502,000 $ 394,000 $ (108,000) ANC Corporation 461,000 502,000 41,000 Totals $ 963,000 $ 896,000 $ (67,000) Long term: Drake Corporation $ 502,000 $ 571,000 $ 69,000 Aaron Industries 709,000 671,000 (38,000) Totals $ 1,211,000 $ 1,242,000 $ 31,000 Required: Prepare appropriate adjusting entry at December 31, 2024. What amount would be reported in the income statement at December 31, 2024, as a result of the adjusting entry?
Loreal-American Corporation purchased several marketable securities during 2024. At December 31, 2024, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2023, and all are considered securities available-for-sale. Short term: Blair, Incorporated ANC Corporation Totals Long term: Drake Corporation Aaron Industries Totals Required 1 Required 2 Cost $ 516,000 468,000 $984,000 View transaction list Fair Value 1 " $ 387,000 516,000 $ 903,000 $ 516,000 702,000 $ 578,000 678,000 $ 1,218,000 $ 1,256,000 Journal entry worksheet Required: 1. Prepare appropriate adjusting entry at December 31, 2024. 2. What amount would be reported in the income statement at December 31, 2024, as a result of the adjusting entry? Complete this question by entering your answers in the tabs below. Unrealized Holding Gain (Loss) $ (129,000) 48,000 $ (81,000) Prepare appropriate adjusting entry at December 31, 2024. Note: If no entry is required for a…
Loreal-American Corporation purchased several marketable securities during 2024. At December 31, 2024, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2023, and all are considered securities available-for-sale. Short term: Blair, Incorporated ANC Corporation Totals Long term: Drake Corporation Aaron Industries Totals Cost $ 496,000 458,000 $ 954,000 $ 496,000 712,000 $ 1,208,000 Fair Value $ 397,000 496,000 $ 893,000 $ 568,000 668,000 $ 1,236,000 Unrealized Holding Gain (Loss) $ (99,000) 38,000 $ (61,000) $ 72,000 (44,000) $ 28,000 Required: 1. Prepare appropriate adjusting entry at December 31, 2024. 2. What amount would be reported in the income statement at December 31, 2024, as a result of the adjusting entry? Anwar is not complete
Loreal-American Corporation purchased several marketable securities during 2018. At December 31, 2018, thecompany had the investments in bonds listed below. None was held at the last reporting date, December 31, 2017,and all are considered securities available-for-sale.Cost Fair ValueUnrealized HoldingGain (Loss)Short term:Blair, Inc. $ 480,000 $ 405,000 $(75,000)ANC Corporation 450,000 480,000 30,000Totals $ 930,000 $ 885,000 $(45,000)Long term:Drake Corporation $ 480,000 $ 560,000 $ 80,000Aaron Industries 720,000 660,000 (60,000)Totals $1,200,000 $1,220,000 $ 20,000Required:1. Prepare appropriate adjusting entries at December 31, 2018.2. What amounts would be reported in the income statement at December 31, 2018, as a result of these adjustingentries?
Loreal-American Corporation purchased several marketable securities during 2021. At December 31, 2021, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2020, and all are considered securities available-for-sale. Cost Fair Value Unrealized HoldingGain (Loss) Short term: Blair, Inc. $ 480,000 $ 405,000 $ (75,000 ) ANC Corporation 450,000 480,000 30,000 Totals $ 930,000 $ 885,000 $ (45,000 ) Long term: Drake Corporation $ 480,000 $ 560,000 $ 80,000 Aaron Industries 720,000 660,000 (60,000 ) Totals $ 1,200,000 $ 1,220,000 $ 20,000 Required:1. Prepare appropriate adjusting entry at December 31, 2021.2. What amount would be reported in the income statement at December 31, 2021, as a result of the adjusting entry?
Some of Ivanhoe Corporation's investments in debt securities are classified as trading securities and some are classified as available for-sale. The cost and fair value of each category at December 31, 2022, were as follows. Trading securities Available-for-sale securities Cost Fair Value $95,000 $83,500 $59,000 $63,000 Unrealized Gain (Loss) $(11,500) $4,000 At December 31, 2021, the Fair Value Adjustment-Trading account had a debit balance of $2,200, and the Fair Value Adjustment- Available-for-Sale account had a credit balance of $6,000. Prepare the required journal entries for each group of securities for December 31, 2022. (List all debit entries before credit entries. 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 O for the amounts)
Beresford Incorporated purchased several investments in debt securities during 2023, its first year of operations. The following information pertains to these securities. The fluctuations in their fair values are not considered permanent. Held-to-Maturity Securities: Fair Value 12/31/2023 Fair Value 12/31/2024 Amortized Cost 12/31/2023 Amortized Cost 12/31/2024 ABC Company Bonds $ 375,000 $ 400,000 $ 367,500 $ 360,000 Trading Securities: Fair Value 12/31/2023 Fair Value 12/31/2024 Cost DEF Company Bonds $ 48,000 $ 59,500 $ 66,000 GEH Incorporated Bonds $ 47,000 $ 77,000 $ 39,000 IJK Incorporated Bonds $ 44,000 $ 38,500 $ 32,900 Available-for-Sale Securities: Fair Value 12/31/2023 Fair Value 12/31/2024 Cost LMN Company Bonds $ 130,500 $ 150,400 $ 140,000 What total unrealized holding gain would Beresford report in its 2024 income statement relative to its investments in bonds?
Stanley Dodge Corporation bought several marketable securities during 2020. At December 31, 2020, the company possessed investments in bonds listed below. All are considered securities available-for-sale. At January 1, 2020, the Corporation's Fair Value Adjustment Account had a credit balance of $150,000. Cost Fair Value Unrealized Holding Gain(Loss) Short Term: Ashkent, Inc $1,100,000 $1,300,000 Imagen Pharma 1,200,000 1,150,000 Total Long term: Erdinger Foods $2,000,000 $1,980,000 Ashanti Gold 1,500,000 1,750,000 Total Prepare the adjusting entries for December 31, 2020. Show how you arrived at the balance needed for the Fair Value Adjustment on 12/31/2020.
Some of Crane Corporation's investments in debt securities are classified as trading securities and some are classified as available-for- sale. The cost and fair value of each category at December 31, 2022, were as follows. Cost Fair Value Unrealized Gain (Loss) Trading securities $96,500 $85,000 $(11,500) Available-for-sale securities $60,000 $63,000 $3,000 At December 31, 2021, the Fair Value Adjustment-Trading account had a debit balance of $2,100, and the Fair Value Adjustment- Available-for-Sale account had a credit balance of $7,200. Prepare the required journal entries for each group of securities for December 31, 2022. (List all debit entries before credit entries. 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 O for the amounts.)
Loreal-American Corporation purchased several marketable securities during 2021. At December 31, 2021, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2020, and all are considered securities available-for-sale. Unrealized Holding Gain (Loss) Cost Fair Value Short term: Blair, Inc. ANC Corporation $ 484,000 452,000 $ 403,000 484,000 $(81,000) 32,000 Totals $ 936,000 $ 887,000 $(49,000) Long term: Drake Corporation $ 484,000 718,000 $ 562,000 $ 78,000 (56,000) $ 22,000 Aaron Industries 662,000 Totals $1,202,000 $1,224,000 Required: 1. Prepare appropriate adjusting entries at December 31, 2021. 2. What amount would be reported in the income statement at December 31, 2021, as a result of the adjusting entry? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 What amount would be reported in the income statement at December 31, 2021, as a result of…
Beresford Inc. purchased several investments in debt securities during 2020, its first year of operations. The following information pertains to these securities. The fluctuations in their fair values are not considered permanent. Held-to-Maturity Fair Value Fair Value Amortized Cost Amortized Cost Securities: 12/31/2020 12/31/2021 12/31/2020 12/31/2021 АВС Со. Вonds $385,000 $410,000 $377, 500 $370, 000 Fair Value Fair Value Trading Securities: 12/31/2021 $ 66,000 $ 87,000 $ 48,500 12/31/2020 Cost DEF Co. Bonds $ 55,000 $ 57,000 $ 54,000 $ 69,100 $ 49,000 $ 42,900 GEH Inc. Bonds IJK Inc. Bonds Available-for-Sale Fair Value Fair Value Cost 12/31/2020 $147,400 Securities: 12/31/2021 LMN Co. Bonds $161,900 $150, 000 What balance sheet amount would Beresford report for the total of its investments in bonds at 12/31/2020?
On January 1, 2024, Everglade Company purchased the following debt securities and properly accounted for them as securities available-for-sale: Security Cost Fair Value, 12/31/2024 ABC $ 58,000 $ 74,800 DEF 91,800 83,000 XYZ 34,000 39,800 All declines in value are considered temporary. What amount should the Everglade Company report relative to these securities in its 2024 statement of other comprehensive income? Multiple Choice $0. $22,600 unrealized holding gain. $13,800 net unrealized holding gain. $8,800 unrealized holding loss.