5. Refer to the information in RE13-3. Assume that on December 31, 2016, the investment in Todd...

Question:

5. Refer to the information in RE13-3. Assume that on December 31, 2016, the investment in Todd bonds has a market value of $22,300, and the investment in Cornett Company stock has a market value of $10,500. Prepare the year-end journal entry to record the unrealized gain or loss.
In RE13-3
These securities consisted of (a) Todd 10%, 5-ycar bonds with a of $20,000 which were purchased for $18,500 and (b) 300 shares of Cornett Company which were purchased at $40 per share
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...