On January 1, 2025, Sandhill Inc. had the following balance sheet. Sandhill Inc. Balance Sheet As of January 1, 2025 Assets Equity Cash $54,200 Common stock $260,800 Debt investments (available-for-sale) Total 220,700 Accumulated other comprehensive income 14,100 $274,900 Total $274,900 The accumulated other comprehensive income related to unrealized holding gains on available-for-sale debt securities. The fair value of Sandhill Inc.'s available-for-sale debt securities at December 31, 2025, was $185,300; its cost was $127,000. No securities were purchased during the year. Sandhill Inc's income statement for 2025 was as follows. (Ignore income taxes.) Sandhill Inc. Income Statement As of January 1, 2025 Dividend revenue $5,300 Gain on sale of investments 27,300 Net income $32,600 Prepare the journal entry to record the sale of the available-for-sale debt securities in 2025. (List all debit entries before credit entries. 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 O for the amounts.) Account Titles and Explanation Debit Credit

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
Chapter21: The Statement Of Cash Flows
Section: Chapter Questions
Problem 14GI: Dunn Company recognized a 5,000 unrealized holding gain on investment in Starbuckss long-term bonds...
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On January 1, 2025, Sandhill Inc. had the following balance sheet.
Sandhill Inc.
Balance Sheet
As of January 1, 2025
Assets
Equity
Cash
$54,200
Common stock
$260,800
Debt investments (available-for-sale)
Total
220,700
Accumulated other comprehensive income
14,100
$274,900
Total
$274,900
The accumulated other comprehensive income related to unrealized holding gains on available-for-sale debt securities. The fair value
of Sandhill Inc.'s available-for-sale debt securities at December 31, 2025, was $185,300; its cost was $127,000. No securities were
purchased during the year. Sandhill Inc's income statement for 2025 was as follows. (Ignore income taxes.)
Sandhill Inc.
Income Statement
As of January 1, 2025
Dividend revenue
$5,300
Gain on sale of investments
27,300
Net income
$32,600
Prepare the journal entry to record the sale of the available-for-sale debt securities in 2025. (List all debit entries before credit
entries. 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 O for the amounts.)
Account Titles and Explanation
Debit
Credit
Transcribed Image Text:On January 1, 2025, Sandhill Inc. had the following balance sheet. Sandhill Inc. Balance Sheet As of January 1, 2025 Assets Equity Cash $54,200 Common stock $260,800 Debt investments (available-for-sale) Total 220,700 Accumulated other comprehensive income 14,100 $274,900 Total $274,900 The accumulated other comprehensive income related to unrealized holding gains on available-for-sale debt securities. The fair value of Sandhill Inc.'s available-for-sale debt securities at December 31, 2025, was $185,300; its cost was $127,000. No securities were purchased during the year. Sandhill Inc's income statement for 2025 was as follows. (Ignore income taxes.) Sandhill Inc. Income Statement As of January 1, 2025 Dividend revenue $5,300 Gain on sale of investments 27,300 Net income $32,600 Prepare the journal entry to record the sale of the available-for-sale debt securities in 2025. (List all debit entries before credit entries. 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 O for the amounts.) Account Titles and Explanation Debit Credit
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