Question
Charlestons available-for-sale debt security investments, purchased 1/1/20, total these amounts: Cost: $40,000 Fair Value @ 12/31/20: $35,000 Fair Value @ 12/31/21: $42,000 Proper adjusting journal
Charlestons available-for-sale debt security investments, purchased 1/1/20, total these amounts:
| Cost: $40,000 | Fair Value @ 12/31/20: $35,000 | Fair Value @ 12/31/21: $42,000 |
Proper adjusting journal entries were made on 12/31/20. Indicate (1) the amounts to be included in 2021 Comprehensive Net Income and (2) the Accumulated OCI balance on the 12/31/21 balance sheet.
Select one:
a.
| 2021 Comprehensive NI | 12/31/21 Accumulated OCI balance |
|---|---|
| $0 | $7,000 credit |
b.
| 2021 Comprehensive NI | 12/31/21 Accumulated OCI balance |
|---|---|
| $7,000 | $2,000 credit |
c.
| 2021 Comprehensive NI | 12/31/21 Accumulated OCI balance |
|---|---|
| $(7,000) | $5,000 debit |
d.
| 2021 Comprehensive NI | 12/31/21 Accumulated OCI balance |
|---|---|
| $(7,000) | $7,000 debit |
e.
| 2021 Comprehensive NI | 12/31/21 Accumulated OCI balance |
|---|---|
| $0 | $2,000 credit |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Organizational Network Analysis Auditing Intangible Resources
Authors: Anna Ujwary-Gil
1st Edition
1032085215, 978-1032085210
