Question
Carpark Services began operations in 20X1 and maintains long-term investments in available-for-sale debt securities. The year-end cost and fair values for its portfolio of these
Carpark Services began operations in 20X1 and maintains long-term investments in available-for-sale debt securities. The year-end cost and fair values for its portfolio of these debt securities follows. The year-end adjusting entry to record the unrealized gain/loss at December 31, 20X1 is:
Available-for-Sale Securities | Cost | Fair Value | |||
December 31, 20X1 | $ | 275,000 | $ | 261,000 | |
December 31, 20X2 | $ | 360,000 | $ | 376,500 | |
Multiple Choice
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Debit Fair Value Adjustment Available-for-Sale (LT) $14,000; Credit Unrealized Gain Equity $14,000.
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Debit Unrealized Loss Equity $14,000; Credit Fair Value Adjustment Available-for-Sale (LT) $14,000.
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Debit Fair Value Adjustment Available-for-Sale (LT) $14,000; Credit Unrealized Loss Equity $14,000.
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Debit Unrealized Gain Equity $14,000; Credit Fair Value Adjustment Available-for-Sale (LT) $14,000.
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Debit Realized Loss Income $14,000; Credit Fair Value Adjustment Available-for-Sale (ST) $14,000.
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