Fair Value Journal Entries, Available-for-Sale InvestmentsThe investments of Steelers Inc. include a single investment: $400,000 of Bengals Inc. 5% bonds purchased at 100 on January 1, 20Y7. These bonds were classified as available-for-sale securities. As of the December 31, 20Y7, balance sheet date, the fair value of the bonds declined to $392,800.a. Journalize the entries to acquire the investment on January 1, 20Y7, and record the adjustment to fair value on December 31, 20Y7. If an amount box does not require an entry, leave it blank.20Y7 Jan. 1Investments-Bengals Inc. Bonds fill in the blank 4f6f0ef46fe1011_2fill in the blank 4f6f0ef46fe1011_3 Cash fill in the blank 4f6f0ef46fe1011_5fill in the blank 4f6f0ef46fe1011_620Y7 Dec. 31 fill in the blank 4f6f0ef46fe1011_8fill in the blank 4f6f0ef46fe1011_9 fill in the blank 4f6f0ef46fe1011_11fill in the blank 4f6f0ef46fe1011_12b. 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 of the .

Unrealized Gain (Loss) on Available-for-Sale Investments = Fair value of Available-for-Sale…

Answered: The investments of Steelers Inc.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Fair Value Journal Entries, Available-for-Sale Investments

The investments of Steelers Inc. include a single investment: $400,000 of Bengals Inc. 5% bonds purchased at 100 on January 1, 20Y7. These bonds were classified as available-for-sale securities. As of the December 31, 20Y7, balance sheet date, the fair value of the bonds declined to $392,800.

a. Journalize the entries to acquire the investment on January 1, 20Y7, and record the adjustment to fair value on December 31, 20Y7. If an amount box does not require an entry, leave it blank.

20Y7 Jan. 1	Investments-Bengals Inc. Bonds	fill in the blank 4f6f0ef46fe1011_2	fill in the blank 4f6f0ef46fe1011_3
	Cash	fill in the blank 4f6f0ef46fe1011_5	fill in the blank 4f6f0ef46fe1011_6
20Y7 Dec. 31		fill in the blank 4f6f0ef46fe1011_8	fill in the blank 4f6f0ef46fe1011_9
		fill in the blank 4f6f0ef46fe1011_11	fill in the blank 4f6f0ef46fe1011_12

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 of the .

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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