Question
Charleston's available-for-sale debt security investments, purchased 1/1/20, total these amounts: Cost: $40,000 Fair Value @ 12/31/20: $42,000 Fair Value @ 12/31/21: $35,000 Proper adjusting journal
Charleston's available-for-sale debt security investments, purchased 1/1/20, total these amounts:
Cost: $40,000 | Fair Value @ 12/31/20: $42,000 | Fair Value @ 12/31/21: $35,000 |
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 | $5,000 credit |
b.
| 2021 Comprehensive NI | 12/31/21 Accumulated OCI balance |
|---|---|
| $0 | $5,000 debit |
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 |
|---|---|
| $5,000 | $5,000 credit |
e.
| 2021 Comprehensive NI | 12/31/21 Accumulated OCI balance |
|---|---|
| $(5,000) | $7,000 debit |
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Fundamental Managerial Accounting Concepts
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old
7th edition
978-0077632427, 77632427, 78025656, 978-0078025655
