Question
4 Loreal-American Corporation purchased several marketable securities during 2018. At December 31, 2018, the company had the investments in bonds listed below. None was held
4
Loreal-American Corporation purchased several marketable securities during 2018. At December 31, 2018, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2017, and all are considered securities available-for-sale.
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| Cost | Fair Value | Unrealized Holding Gain (Loss) | |||||||||
| Short term: |
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| Blair, Inc. | $ | 520,000 |
|
| $ | 385,000 |
|
| $ | (135,000 | ) |
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| ANC Corporation |
| 470,000 |
|
|
| 520,000 |
|
|
| 50,000 |
|
|
| Totals | $ | 990,000 |
|
| $ | 905,000 |
|
| $ | (85,000 | ) |
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| Long term: |
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|
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| Drake Corporation | $ | 520,000 |
|
| $ | 580,000 |
|
| $ | 60,000 |
|
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| Aaron Industries |
| 700,000 |
|
|
| 680,000 |
|
|
| (20,000 | ) |
|
| Totals | $ | 1,220,000 |
|
| $ | 1,260,000 |
|
| $ | 40,000 |
|
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Required: 1. Prepare appropriate adjusting entries at December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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Core concepts of accounting information systems
Authors: Jacob M. Rose, Mark G. Simkin, Carolyn Strand Norman
13th edition
978-1-119-0332, 1118742931, 978-1118742938
