Horngren's Accounting, Student Value Edition (12th Edition)
Horngren's Accounting, Student Value Edition (12th Edition)
12th Edition
ISBN: 9780134487151
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Chapter 15, Problem S15.6SE
To determine

Available for sale debt investment:

Available for sale debt investment is the investment made in the debt securities for short term period. These securities are adjusted in account for the gain or loss using the market value on the date of valuation. These debt securities are valued at market price and unrealized gain or loss is recognized in the income statement for the period.

1. Journal entries for the Available for sale debt investment transactions:

To prepare: The Journal entries for the Available for sale debt investment

To determine

2. Presentation of the Available for sale debt investment:

To indicate: The Presentation of the Available for sale debt investment

To determine

3. Net effect on income:

To determine: The Net effect of the investment on income for the year ending Dec. 31, 2018.

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