Prepare the journal entry to record the sale of the available-for-sale debt securities in 2020. (Credit account titles are automaticallyindented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for theamounts)Account Titles and ExplanationDebitCredit On January 1, 2020, Wildhorse Inc. had the following balance sheet.WILDHORSE INC.BALANCE SHEETAS OF JANUARY 1, 2020AssetsCashDebt investments (available-for-sale)Total$54,300256,700$311,000Dividend revenueGain on sale of investmentsNet incomeWILDHORSE INC.INCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2020$5,50029,700$35,200EquityCommon stockAccumulated other comprehensive incomeTotalThe accumulated other comprehensive income related to unrealized holding gains on available-for-sale debt securities. The fair valueof Wildhorse Inc's available-for-sale debt securities at December 31, 2020, was $181,900; its cost was $128,800. No securities werepurchased during the year. Wildhorse Inc.'s income statement for 2020 was as follows. (Ignore income taxes.)$277,20033,800$311,000

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Prepare the journal entry to record the sale of the available-for-sale debt securities in 2020. (C

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

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 18P

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