CHAPTER 12 (7.)

On February 18, 2018, Union Corporation purchased $1,056,000 of IBM bonds. Union will hold the bonds indefinitely, and may sell them if their price increases sufficiently. On December 31, 2018, and December 31, 2019, the market value of the bonds was $1,024,000 and $1,072,000, respectively. Required: 2. & 3. Prepare the adjusting entry for December 31, 2018 and 2019. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

BELOW IS THE PICTURE OF THE ANSWERS I GOT WRONG.

X Answer is complete but not entirely correct. Credit No 1 Date General Journal December 31, 2018 Unrealized holding loss-OCI Fair vol Fair value adjustment Debit 32,000 32,000 16,000 December 31, 2015 Fair value adjustment Unrealized holding gainOCI 16,000 X