Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Below are selected T-accounts for the RunnerTech Company, which reported its investments as noncurrent assets. 1/1 Investments (available-for-sale securities) 11,000 Purchase 50,000 Sale AJE 1,400

image text in transcribedimage text in transcribed

Below are selected T-accounts for the RunnerTech Company, which reported its investments as noncurrent assets. 1/1 Investments (available-for-sale securities) 11,000 Purchase 50,000 Sale AJE 1,400 31,000 Year-end AJE ? 12/31 34,800 Sale Reclassification Unrealized Gains (in OCI) 400 1,500 1,400 2 1,500 1/1 Sale AJE Year-end AJE 12/31 Interest Revenue 0 2 3,000 1/1 Earned 12/31 Gain on Sale of Investments 1/1 O ? Reclassification 12/31 2 Required: Complete the following journal entries: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. Purchased available-for-sale bond securities for cash. b. Received interest on the bond investments. c. Sold half of the portfolio when the fair value was $31,000. d. At year-end, the remaining securities in the portfolio had a fair value of $34,800. e. What would be reported on the balance sheet related to the available-for-sale bond investments on December 31? f. What would be reported on the income statement for the year

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

A One Year Accounting Course

Authors: Trevor Gambling

21st Edition

0080130275, 9780080130279

More Books

Students also viewed these Accounting questions