For the Coca-Cola bonds described in BE 12-2, prepare journal entries to record (a) Any unrealized gains
Question:
For the Coca-Cola bonds described in BE 12-2, prepare journal entries to record
(a) Any unrealized gains or losses occurring in 2018
(b) The sale of the bonds in 2019.
In BE 12-2
S&L Financial buys and sells securities expecting to earn profits on short-term differences in price. On December 27, 2018, S&L purchased Coca-Cola bonds at par for $875,000 and sold the bonds on January 3, 2019, for $880,000. At December 31, the bonds had a fair value of $873,000. What pretax amounts did S&L include in its 2018 and 2019 net income as a result of this investment (ignoring interest)?
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a 2018 December 31 Unrealized holding l oss x NI 2000 Fair value ...View the full answer
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Related Book For 
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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