Adjusting to Fair Value - journal entries Adjusting AFSto Fail valueA portfolio of investments of available-for-sale securities held by Dow Inc. is as follows.Dec. 31, 2020CostFair ValueEastern Corp. bonds $216,000$230,400Western Corp. bonds360,000369,000Total$576,000$599,400Dec. 31, 2021CostFair ValueEastern Corp. bonds $216,000$252,000Western Corp. bonds360,000342,000Total$576,000$594,000The Fair Value Adjustment account had a $0 balance on January 1, 2020. No sales or purchases took place in the available-for-sale investment portfolio in2020 and 2021.a. Record the adjusting entry on December 31, 2020, to adjust the debt investments to fair value.DateAccount NameDr.Cr.Dec. 31, 2020 Fair Value Adjustment--AFSb. Record the adjusting entry on December 31, 2021, to adjust the debt investments to fair value.DateAccount NameDr.Cr.Dec. 31, 2021

Date Account Name Dr. Cr. Dec 31,2020 Eastern Corp. Bonds 14,400 Western Corp. Bonds 9,000…

Answered: Adjusting to Fair Value - journal…

Business

Accounting

Adjusting to Fair Value - journal entries

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 16E

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