Fair Value Journal Entries, Available-for-Sale Investments

The investments of Steelers Inc. include a single investment: 10,400 shares of Bengals Inc. common stock purchased on September 12, Year 1, for $14 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 $11 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	Investments-Bengals Inc. Stock	fill in the blank feee46fbc07805f_2
	Cash		fill in the blank feee46fbc07805f_4
Year 1 Dec. 31	Unrealized Gain (Loss) on Available-for-Sale Investments	fill in the blank feee46fbc07805f_6
	Valuation Allowance for Available-for-Sale Investments		fill in the blank feee46fbc07805f_8

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 Other income(loss) of the income statement .