Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1 Loreal-American Corporation purchased several marketable securities during 2021. At December 31, 2021, the company had the investments in bonds listed below. None was held

image text in transcribed
image text in transcribed
image text in transcribed
1 Loreal-American Corporation purchased several marketable securities during 2021. At December 31, 2021, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2020, and all are considered securities available-for-sale. Unrealized Holding Cost Fair Value Gain (Loss) Short term Blair, Inc. $ 498,00 $ 396,000 $(192,000) ANC Corporation 459,000 498,000 39,000 Totals $ 957,000 $ 394,000 $ (63,000) Long term: Drake Corporation $ 498,000 $ 569,000 $ 71,000 Aaron Industries 711,000 569,000 (42,000 Totals $1,209,000 $1,238,000 $ 29,000 Required: 1. Prepare appropriate adjusting entries at December 31, 2021. 2. What amount would be reported in the income statement at December 31, 2021, as a result of the adjusting entry? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare appropriate adjusting entry at December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 12 Homework Server 4 Required 1 Required 2 Prepare appropriate adjusting entry at December 31, 2021 (If no entry is required for a transaction/event, select "ho journal entry required" in the first account field.) View transaction list 04:09:47 Journal entry worksheet Book Record the adjusting entry December 31, 2021. Hint Print Not Enter debits before credits General Journal Deble Credit Datu December 31 2021 erences View general journal Record entry Clear entry Required 2 > $957,000 $ 894,000 (63, 000) Totals Long term: Drake Corporation Aaron Industries Totals $ 498,000 711,000 $1,209,000 $ 569,000 669,000 $1,238,000 $ 71,000 (42.eee) $ 29,000 Required: 1. Prepare appropriate adjusting entries at December 31, 2021. 2. What amount would be reported in the income statement at December 31, 2021. as a result of the adjusting entry? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What amount would be reported in the income statement at December 31, 2021, as a result of the adjusting entry? Amount

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting A Critical Approach

Authors: John Friedlan

1st Edition

0130193720, 978-0130193728

More Books

Students also viewed these Accounting questions

Question

How does this scenario illustrate the process of mainstreaming?

Answered: 1 week ago

Question

What are personal and social media?

Answered: 1 week ago