On January 1, 20Y7, Valuation Allowance for Available-for-Sale Investments had a zero balance. On December 31, 20Y7, the cost of the available-for-sale securities was $189,000, and the fair value was $194,170. Journalize the adjusting entry to record the unrealized gain or loss on available-for-sale investments on December 31. If an amount box does not require an entry, leave it blank. Dec. 31

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
**Available-for-Sale Securities at Fair Value**

On January 1, 20Y7, the Valuation Allowance for Available-for-Sale Investments had a zero balance. On December 31, 20Y7, the cost of the available-for-sale securities was $189,000, and the fair value was $194,170.

Journalize the adjusting entry to record the unrealized gain or loss on available-for-sale investments on December 31. If an amount box does not require an entry, leave it blank.

**Journal Entry on Dec. 31:**

- [Debit/Credit selection box]
- [Amount entry box]
- [Debit/Credit selection box]
- [Amount entry box]

The task involves determining the unrealized gain or loss and making a journal entry to reflect this change in valuation. The unrealized gain is the difference between the fair value and the cost of the securities.
Transcribed Image Text:**Available-for-Sale Securities at Fair Value** On January 1, 20Y7, the Valuation Allowance for Available-for-Sale Investments had a zero balance. On December 31, 20Y7, the cost of the available-for-sale securities was $189,000, and the fair value was $194,170. Journalize the adjusting entry to record the unrealized gain or loss on available-for-sale investments on December 31. If an amount box does not require an entry, leave it blank. **Journal Entry on Dec. 31:** - [Debit/Credit selection box] - [Amount entry box] - [Debit/Credit selection box] - [Amount entry box] The task involves determining the unrealized gain or loss and making a journal entry to reflect this change in valuation. The unrealized gain is the difference between the fair value and the cost of the securities.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education