Prepare the December 31 adjusting journal entry to record the unrealized gain or loss on trading investments.
Q: Prepare the December 31 adjusting journal entry to record the unrealized gain or loss on trading…
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Q: Prepare the December 31 adjusting journal entry to record the unrealized gain or loss on trading…
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A: (a)
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Prepare the December 31
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- On September 30, Franz Corporation notices a decline in value of its investment in held-to-maturity bonds. On that date, the carrying value of the bonds is 38,500 and the fair value is 22,980. Franz evaluation of this investment reveals that expected credit losses are 10,000. Prepare the journal entry to record the impairment.On January 1, the Valuation Allowance for Trading Investments account has a zero balance. On December 31, the cost of trading securities portfolio was $64,200, and the fair value was $67,000. Prepare the December 31 adjusting journal entry to record the unrealized gain or loss on trading investments (you can attach Excel or Word rather than typing in answer box).On January 1, Valuation Allowance for Trading Investments had a zero balance. On December 31, the cost of the trading securities portfolio was $379,600, and the fair value was $358,900. Prepare the December 31 adjusting journal entry to record the unrealized gain or loss on trading investments. Refer to the Chart of Accounts for exact wording of account titles.
- 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 InvestmentsOn January 1, 20Y3, Valuation Allowance for Trading Investments had a zero balance. On December 31, 20Y3, the cost of the trading securities portfolio was $346,000, and the fair value was $309,000. Required: Journalize the December 31, 20Y3, adjusting entry to record the unrealized gain or loss on trading investments. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Petty Cash 120 Accounts Receivable 121 Allowance for Doubtful Accounts 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 145 Office Supplies 161 Trading Investments 162 Available-for-Sale Investments 165 Valuation Allowance for Trading Investments 166 Valuation…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 $85,100, and the fair value was $78,770. 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.
- Valuing Trading Securities at Fair Value On January 1, Valuation Allowance for Trading Investments had a zero balance. On December 31, the cost of the trading securities portfolio was $65,000, and the fair value was $66,700. Prepare the December 31 adjusting journal entry to record the unrealized gain or loss on trading investments.On January 1, Valuation Allowance for Trading The balance sheet caption used to report temporary or long-term investments in stocks or bonds held as either trading, available-for-sale, held-to-maturity or equity method securities. Investments had a zero balance. On December 31, the cost of the trading securities portfolio was $66,800, and the fair value was $68,000. Prepare the December 31 adjusting journal entry to record the Changes in the fair value of equity or debt securities for a period.unrealized gain or loss on trading investments. Dec. 31aluing Trading Securities at Fair Value On January 1, Valuation Allowance for Trading Investments had a zero balance. On December 31, the cost of the trading securities portfolio was $59,000, and the fair value was $60,400. Prepare the December 31 adjusting journal entry to record the unrealized gain or loss on trading investments. Dec. 31
- Valuing Trading Securities at Fair ValueOn January 1, Valuation Allowance for Trading Investments had a zero balance. On December 31, the cost of the trading securities portfolio was $47,000, and the fair value was $48,300.Prepare the December 31 adjusting journal entry to record the unrealized gain or loss on trading investments.Dec. 31Bramble Corporation purchases equity securities costing $ 66,200. At December 31, the fair value of the portfolio is $ 58,100.Prepare the adjusting entry to report the securities properly, assuming that the investments purchased represent less than a 5% interest in the other companies. (Credit account titles are automatically indented when 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 CreditValuing 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.