Homework Help is Here – Start Your Trial Now!
Business
Accounting
Loreal-American Corporation purchased several marketable securities during 2024. At December 31, 2024, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2023, and all are considered securities available-for-sale. Cost Fair Value Short term: ANC Corporation Totals Long term: Blair, Incorporated $ 492,000 456,000 $ 948,000 $ 399,000 492,000 $ 891,000 Drake Corporation Aaron Industries $ 492,000 714,000 $ 566,000 666,000 Totals $ 1,206,000 $ 1,232,000 Required: Unrealized Holding Gain (Loss) $ (93,000) 36,000 $ (57,000) $ 74,000 (48,000) $ 26,000 1. Prepare appropriate adjusting entry at December 31, 2024. 2. What amount would be reported in the income statement at December 31, 2024, as a result of the adjusting entry?

Loreal-American Corporation purchased several marketable securities during 2024. At December 31, 2024, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2023, and all are considered securities available-for-sale. Cost Fair Value Short term: ANC Corporation Totals Long term: Blair, Incorporated $ 492,000 456,000 $ 948,000 $ 399,000 492,000 $ 891,000 Drake Corporation Aaron Industries $ 492,000 714,000 $ 566,000 666,000 Totals $ 1,206,000 $ 1,232,000 Required: Unrealized Holding Gain (Loss) $ (93,000) 36,000 $ (57,000) $ 74,000 (48,000) $ 26,000 1. Prepare appropriate adjusting entry at December 31, 2024. 2. What amount would be reported in the income statement at December 31, 2024, as a result of the adjusting entry?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Haresh 

Loreal-American Corporation purchased several marketable securities during 2024. At December 31, 2024, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2023, and all are considered securities available-for-sale. Cost Fair Value Short term: ANC Corporation Totals Long term: Blair, Incorporated $ 492,000 456,000 $ 948,000 $ 399,000 492,000 $ 891,000 Drake Corporation Aaron Industries $ 492,000 714,000 $ 566,000 666,000 Totals $ 1,206,000 $ 1,232,000 Required: Unrealized Holding Gain (Loss) $ (93,000) 36,000 $ (57,000) $ 74,000 (48,000) $ 26,000 1. Prepare appropriate adjusting entry at December 31, 2024. 2. What amount would be reported in the income statement at December 31, 2024, as a result of the adjusting entry?
Transcribed Image Text:Loreal-American Corporation purchased several marketable securities during 2024. At December 31, 2024, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2023, and all are considered securities available-for-sale. Cost Fair Value Short term: ANC Corporation Totals Long term: Blair, Incorporated $ 492,000 456,000 $ 948,000 $ 399,000 492,000 $ 891,000 Drake Corporation Aaron Industries $ 492,000 714,000 $ 566,000 666,000 Totals $ 1,206,000 $ 1,232,000 Required: Unrealized Holding Gain (Loss) $ (93,000) 36,000 $ (57,000) $ 74,000 (48,000) $ 26,000 1. Prepare appropriate adjusting entry at December 31, 2024. 2. What amount would be reported in the income statement at December 31, 2024, as a result of the adjusting entry?
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS