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Can someone help me understand why I got investments / unrealized gains wrong? what is the correct answer? Below are selected T-accounts for the RunnerTech
Can someone help me understand why I got investments / unrealized gains wrong? what is the correct answer?
Below are selected T-accounts for the RunnerTech Company, which reported its investments as noncurrent assets. Investments (available-for-sale securities) 1/1 9,000 Purchase 46,000 Sale AJE 1,200 32,000 Year-end AJE ? 12/31 35,200 Sale Unrealized Gains (in OCI) 400 1,400 1,200 ? Reclassification 1/1 Sale AJE Year-end AJE 1,500 12/31 Interest Revenue 0 ? 1/1 Earned 3,500 12/31 Gain on Sale of Investments 1/1 0 ? Reclassification ? 12/31 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 $32,000. d. At year-end, the remaining securities in the portfolio had a fair value of $35,200. 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? No Transaction General Journal Debit Credit 1 a. Investments 46,000 Cash 46,000 2 b. Cash 3,500 Interest revenue 3,500 3 C-1. Investments 1,200 Unrealized gains 1,200 4 C-2. Unrealized gains 1,400 Gain on sale of investments 1,400 5 C-3 Cash 32,000 Investments 32,000 6 d. Investments 15,200 X Unrealized gains 15,200 XStep by Step Solution
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