Question
Fair Value Journal Entries, Available-for-Sale Investments The investments of Steelers Inc. include a single investment: 14,600 shares of Bengals Inc. common stock purchased on September
Fair Value Journal Entries, Available-for-Sale Investments
The investments of Steelers Inc. include a single investment: 14,600 shares of Bengals Inc. common stock purchased on September 12, Year 1, for $11 per share including brokerage commission. These shares were classified as available-for-sale securities. As of the December 31, Year 1, balance sheet date, the share price declined to $8 per share.
a. Journalize the entries to acquire the investment on September 12 and record the adjustment to fair value on December 31, Year 1.
Year 1 Sept. 12 | |||
Year 1 Dec. 31 | |||
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 .
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