Fair Value Journal Entries, Available-for-Sale Investments The investments of Steelers Inc. include a single investment: 8,100 shares of Bengals Inc. common stock purchased on September 12, Year 1, for $13 per share including brokerage commission. These shares were classified as available-for-sale securities. As of the December 31, Year 1, balance sheet date, the share price declined to $10 per share. Cash Cash Dividends Interest Receivable Investments-Bengals Inc. Stock Retained Earnings Unrealized Gain (Loss) on Available-for-Sale Investments Valuation Allowance for Available-for-Sale Investme a. Journalize the entries to acquire the investment on September 12 and record the adjustment to fair value on December 31, Year 1.
Fair Value
The investments of Steelers Inc. include a single investment: 8,100 shares of Bengals Inc. common stock purchased on September 12, Year 1, for $13 per share including brokerage commission. These shares were classified as available-for-sale securities. As of the December 31, Year 1,
Cash
Cash Dividends
Interest Receivable
Investments-Bengals Inc. Stock
Unrealized Gain (Loss) on Available-for-Sale Investments
Valuation Allowance for Available-for-Sale Investme
a. Journalize the entries to acquire the investment on September 12 and record the adjustment to fair value on December 31, Year 1.
Year 1 Sept. 12
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Year 1 Dec. 31
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b. How is the unrealized gain or loss for available-for-sale investments disclosed on the financial statements?
Unrealized Gain (Loss) on Available-for-Sale Investments is reported in the (other income (loss)/
of the ( balance or income sheet?)
.
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