Accounting for Investments Project Dear Students, This semester, I am running a pilot of a project that is designed to provide light exposure to type of assignment that you would have on a CPA simulation exam. I picked Investments (Chapter 12 as the topic). In this proiect you will be presented with financial information for a sample company along with a scenario where there is a change in classification of the company's Investments. You are to provide the journal entries to adjust the financials and also write a memo explaining the impact that the change has had on the financials. In this memo you must also reference the FASB codification that describes how the investments should be accounted for. The memo should be addressed to the management of the organization and explain the impact that the change in reporting methodology has on the financials statements. Please refer to Powerpoint presentation for chapter 12, slides 18 and 37 for guidance on the differences in the reporting methodology Scenario: Aviation Inc. purchased securities on 1/1/2019 that would initially be accounted for in the financial statements as an investment hold-to-maturity. Fair Market Held to Maturity Securities: Bronx Co. Bonds Cost 1/1/2019 $ 300,000 12/31/2019 $278,000 At 12/31/2019, Aviation Inc. decided that they would sale the bond within 90 days. Assume that Aviation now has to adjust their financial statements and account for the investment as available for sale. Write a memo detailing the impact that the change will have on each financial statement and site and explain the accounting codification per www.fasb.org that explains how this change should be accounted for in the financial statements. You must show the journal entry that will be made to adjust the financials statements. Professor Hicks