Investment in AFS Securities Oracle Corporation's 2018 annual report discloses the following information regarding its investments in AFS securities 2018 net gain on AFS securities, from the 2018 statement of comprehensive income $75 million Investment in AFS securities balances at December 31, 2018, and 2017, from the balance sheet $4,900 million and $4,300 million, respectively Proceeds from 2018 sales or maturities of AFS securities $4,200 million Gains and losses from 2018 sales or maturities of AFS securities, from the 2018 income statement gross gains $17 million, gross losses $13 million Required a Assume 2018 reclassifications to income for disposal of AFS securities increased 2018 OCI by $25 million Prepare the summary entry to record the sale of the securities b Prepare the adjusting entry to record unrealized gains or losses on AFS securities on hand at year end c Prepare the entry to record new investments in AFS securities in 2018

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Posted on May 27, 2024

Investment in AFS Securities Oracle Corporation's 2018 annual report discloses the following information regarding its investments in AFS securities: 2018 net gain on AFS

Investment in AFS Securities Oracle Corporation's 2018 annual report discloses the following information regarding its investments in AFS securities:
- 2018 net gain on AFS securities, from the 2018 statement of comprehensive income: $75 million
- Investment in AFS securities balances at December 31, 2018, and 2017, from the balance sheet: $4,900 million and $4,300 million, respectively
- Proceeds from 2018 sales or maturities of AFS securities: $4,200 million
- Gains and losses from 2018 sales or maturities of AFS securities, from the 2018 income statement: gross gains $17 million, gross losses $13 million

Required: a. Assume 2018 reclassifications to income for disposal of AFS securities increased 2018 OCI by $25 million. Prepare the summary entry to record the sale of the securities. b. Prepare the adjusting entry to record unrealized gains or losses on AFS securities on hand at year-end. c. Prepare the entry to record new investments in AFS securities in 2018.