For several years Fister Links Products has held Microsoft bonds, considered by the company to be securities available-for-sale. The bonds were acquired at a cost of $500,000. At the end of 2021, their fair value was $610,000 and their amortized cost was $510,000. At the end of 2022, their fair value was $600,000 and their amortized cost was $520,000. At what amount will the investment be reported in the December 31, 2022, balance sheet? What adjusting entry is required to accomplish this objective (ignore interest)?
For several years Fister Links Products has held Microsoft bonds, considered by the company to be securities available-for-sale. The bonds were acquired at a cost of $500,000. At the end of 2021, their fair value was $610,000 and their amortized cost was $510,000. At the end of 2022, their fair value was $600,000 and their amortized cost was $520,000. At what amount will the investment be reported in the December 31, 2022, balance sheet? What adjusting entry is required to accomplish this objective (ignore interest)?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 1MC
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For several years Fister Links Products has held Microsoft bonds, considered by the company to be securities available-for-sale. The bonds were acquired at a cost of $500,000. At the end of 2021, their fair value was $610,000 and their amortized cost was $510,000. At the end of 2022, their fair value was $600,000 and their amortized cost was $520,000. At what amount will the investment be reported in the December 31, 2022,
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