Fair Value Journal Entries, Available-for-Sale Investments

The investments of Steelers Inc. include a single investment: $400,000 of Bengals Inc. 5% bonds purchased at 100 on January 1, 20Y7. These bonds were classified as available-for-sale securities. As of the December 31, 20Y7, balance sheet date, the fair value of the bonds declined to $392,800.

a. Journalize the entries to acquire the investment on January 1, 20Y7, and record the adjustment to fair value on December 31, 20Y7. If an amount box does not require an entry, leave it blank.

b. How is the unrealized gain or loss for available-for-sale investments disclosed on the financial statements?

Unrealized Gain (Loss) on Available-for-Sale Investments is reported in the of the

a. Journalize the entries to acquire the investment on Janua leave it blank. 20Y7Jan.1 20Y7 Dec. 31 Cash Dividends Cash Interest Receivable Investments-Bengals Inc. Bonds Retained Earnings Unrealized Gain on Available-for-Sale Investments Unrealized Loss on Available-for-Sale Investments Valuation Allowance for Available-for-Sale Investments Cash Dividends Cash Interest Receivable Investments-Bengals Inc. Bonds Retained Earnings Unrealized Gain on Available-for-Sale Investments urUnrealized Loss on Available-for-Sale Investments Valuation Allowance for Available-for-Sale Investments Cash Dividends Cash Interest Receivable Investments-Bengals Inc. Bonds Retained Earnings Unrealized Gain (Loss) on Available-for-Sale Investments Valuation Allowance for Available-for-Sale Investments Cash Dividends Cash Interest Receivable Investments-Bengals Inc. Bonds Retained Earnings Unrealized Gain (Loss) on Available-for-Sale Investments Valuation Allowance for Available-for-Sale Investments of the other income(loss) stockholders' equity section balance sheet income statement