Valuing Available-for-Sale Securities at Fair Value On January 1, Valuation Allowance for Available-for-Sale Investments had a zero balance. On December 31, the cost of the available-for-sale securities was $216,000, and the fair value was $221,900. Prepare the adjusting entry to record the unrealized gain or loss on available-for-sale investments on December 31.

Indigo Corporation purchased trading investment bonds for $64,000 at par. At December 31, Indigo received annual interest of $2,560, and the fair value of the bonds was $61,200.Prepare Indigo' journal entries for (a) the purchase of the investment, (b) the interest received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.)

On December 31, the cost of trading securities portfolio was $64,200, and the fair value was $67,000. The adjusting entry to record the unrealized gain or loss on trading investments would included a : Group of answer choices debit Unrealized Loss on Trading Investments debit Unrealized Gain on Trading Investments credit Unrealized Loss on Trading Investments credit Unrealized Gain on Trading Investments

! Required information [The following information applies to the questions displayed below.] On December 31, Reggit Company held the following short-term investments in its portfolio of available-for-sale debt securities. Reggit had no short-term investments in its prior accounting periods. Available-for-Sale Securities Verrizano Corporation bonds Preble Corporation notes Lucerne Company bonds Prepare the December 31 adjusting entry to report these investments at fair value. General Journal Complete this question by entering your answers in the tabs below. Fair Value Adjustment Computation of fair value adjustment. Cost $ 68,000 49,000 64,000 Verrizano Corporation bonds Preble Corporation notes Lucerne Company bonds Total Fair Value Adjustment Computation - Available for Sale Portfolio Unrealized Amount Cost Fair Value $ 66,640 43,610 61,440 Fair Value $ 68,000 $ 66,640 49,000 43,610 64,000 61,440 $ 181,000 $ 171,690 Unrealized Loss

On February 15, Jewel Company buys bonds of Marcelo Corp. for $201,700. The investment is classified as available-for-sale securities. This is the company’s first and only investment in available-for-sale securities. On December 31, the bonds had a fair value of $203,700. The entry to record the year-end adjustment is:

Year 2 and 3 for Fair Value at the end of the year are still incorrect and I do not understand why?

On December 31, Reggit Company held the following short-term investments in its portfolio of available-for-sale debt securities. Reggit had no short-term investments in its prior accounting periods. Available-for-Sale Securities Verrizano Corporation bonds Preble Corporation notes Lucerne Company bonds epare the December 31 adjusting entry to report these investments at fair value. Fair Value Adjustment Computation of fair value adjustment. Complete this question by entering your answers in the tabs below. General Journal Cost $ 76,000 57,000 72,000 Verrizano Corporation bonds Preble Corporation notes Lucerne Company bonds Total Fair Value Adjustment Computation - Available for Sale Portfolio Unrealized Amount Cost $ Fair Value $ 74,480 50,730 69,120 Fair Value 76,000 $ 74,480 57,000 50,730 72,000 69,120 $ 205,000 $ 194,330 CO

On January 1, Valuation Allowance for Available-for-Sale Investments had a zero balance. On December 31, the cost of the available-for-sale securities was $78,400, and the fair value was $72,330. Prepare the adjusting entry to record the unrealized gain or loss on available-for-sale investments on December 31. Refer to the Chart of Accounts for exact wording of account titles.

Recording Entries for Impairment of Investments-HTM Atlanta Inc. holds an HTM bond investment in Falcons Corporation. The carrying value of the investment is $112,400 on December 31. Atlanta Inc. determines the present value of the amounts expected to be collected under the debt contract under the CECL model to be $96,000. a. Record the impairment loss on December 31. Date Account Name Dec. 31 Loss on Impairment Investment Income Account Name ◆ Loss on Impairment ✓ x <) b. Assume that Atlanta Inc. holds the HTM bond investment in Falcons Corporation on December 31 of the following year. Record the adjusting entry if the present value of the amounts expected to be collected under the debt contract under the CECL model is now estimated to be $104,000. Date Dec. 31 Investment Income Dr. 16,400 ✓ 0✓ 수 x → x Dr. 8,000 Cr. 0✔ 0 16,400 Cr. 0 8,000

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