Answered: Avallable-for-Sale Securitles Cost Falr…

Avallable-for-Sale Securitles Cost Falr Value Nintendo Co. notes.. $44,450 $48,900 Atlantic bonds.... Kellogg Co. notes . McDonald's Corp. bonds 49,000 47,000 25,000 23,200 46,300 44,800

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

On December 31, Lujack Co. held the following short-term available-for-sale securities. Lujack had no
short-term investments prior to the current period. Prepare the December 31 year-end adjusting entry to
record the fair value adjustment for these debt securities.

Avallable-for-Sale Securitles
Cost
Falr Value
Nintendo Co. notes..
$44,450
$48,900
Atlantic bonds....
Kellogg Co. notes .
McDonald's Corp. bonds
49,000
47,000
25,000
23,200
46,300
44,800

Definition Definition Entries made at the end of every accounting period to precisely replicate the expenses and revenue of the current period. This is also known as end of period adjustment. It can also refer to financial reporting that corrects errors made previously in the accounting period. Every adjustment entry affects at least one real account and one nominal account.

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