Prepare the entry to record any unrealized holding gain or loss. (Credit account titles are automatically indented when the amount isentered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)Account Titles and ExplanationDebitCredit Bramble Corporation has elected to use the fair value option for one of its notes payable. The note was issued at an effective rate of9% and has a carrying value of $73,500. At year-end, Bramble's borrowing rate has increased; the fair value of the note payable is now$68,100.

Unrealized holding gain (loss) = Fair Value – Book Value = $68,100 - 73,500 = ($5,400)

Bramble Corporation has elected to use the fair value option for one of its notes payable. The note was issued at an effective rate of 9% and has a carrying value of $73,500. At year-end, Bramble's borrowing rate has increased; the fair value of the note payable is now $68,100.

Bramble Corporation has elected to use the fair value option for one of its notes payable. The note was issued at an effective rate of 9% and has a carrying value of $73,500. At year-end, Bramble's borrowing rate has increased; the fair value of the note payable is now $68,100.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter16: Accounting For Accounts Receivable

Section: Chapter Questions

Problem 5TF: Each time an account is written off under the direct write-off method, Bad Debt Expense is debited.

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Question

100%

Prepare the entry to record any unrealized holding gain or loss. (Credit account titles are automatically indented when the amount is
entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation
Debit
Credit

Bramble Corporation has elected to use the fair value option for one of its notes payable. The note was issued at an effective rate of
9% and has a carrying value of $73,500. At year-end, Bramble's borrowing rate has increased; the fair value of the note payable is now
$68,100.

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