Question
Fair Value Journal Entries, Available-for-Sale Investments The investments of Steelers Inc. include a single investment: 11,600 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: 11,600 shares of Bengals Inc. common stock purchased on September 12, 20Y7, for $10 per share including brokerage commission. These shares were classified as available-for-sale securities. As of the December 31, 20Y7, 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, 20Y7.
20Y7 Sept. 12 | |||
20Y7 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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