On February 1, 2018, Bell Co. decides to invest excess cash of $16,800 by purchasing a Grant, Inc. bond at face value. At year-end. December 31, 2018, the fair value of the Grant bond was $19,600. The investment is categorized as a trading debt investment. Read the requirements Requirement 1. Joumalize the transactions for Bells investment in Grant, Inc. for 2018. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. If no entry is required, select "No entry required" on the first line of the Accounts and Explanation column and leave the remaining cells blank.) Begin by journalizing Bull's investment in the Grant, Inc., bond, Date Accounts and Explanation Debit Credit i Requirements Feb. 1 1. Journalize the transactions for Bell's investment in Grant, Inc. for 2018. 2. In what category and at what value would Bell report the asset on the December 31, 2018, balance sheet? In what account would the market price change in Grant's bond bo reported, if at all? 3. What was the net effect of the investment on Bell's net income for the year ended December 31, 2018? Journalize the adjustment, if required, at year-end, December 31, 2018. Grant's market price was $19,600 per share. Date Accounts and Explanation Debit Credit Print Done Dec. 31 Requirement 2. In what category and at what value would Bell report the asset on the December 31, 2018, balance sheet? In what account would the market price change in Grant's bond be reported, if at all? Bell would report the asset at $ classified as a on the balance sheet as of December 31, 2018. The market price change would Requirement 3. What was the net effect of the investment on Bell's net income for the year ended December 31, 2018? (Enter "0" as the amount if net income has not changed.) Bell's net income for the year ended December 31, 2018, has The amount by which net income has changed is $ Begin by journalizing Bell's investment in the Grant, Inc., bond. Date Accounts and Explanation Debit Feb. 1 price was Debit No entry required Available-for-Sale Debt Investments Cash Dividend Revenue lournalize the ac Equity InvestmentsGrant Fair Value Adjustment-Available-for-Sale Date Fair Value AdjustmentTrading Dec. 31 Gain on Disposal Held-To-Maturity Debt Investment Interest Revenue Loss on Disposal Trading Debt Investments Unrealized Holding GainAvailable-for-Sale Unrealized Holding GainTrading hoose from any Unrealized Holding Loss-Available-for-Sale Unrealized Holding LossTrading the next qi Begin by journalizing Bell's investment in the Grant, Inc., bond. Date Accounts and Explanation Debit Feb. 1 price was Debit Journalize the ac Adjusted available-for-sale debt investments to fair value. Date Adjusted trading debt investments to fair value. Dec. 31 Disposed of bond at maturity. Disposed of investment in stock. Purchased investment in bonds. Purchased investment in stock. Received cash dividend. Choose from any list or enter any number in the input fields and then continue to the next qi Journalize the adjustment, if required, at year-end, December 31, 2018. Grant's market price was $19,600 per share. Date Accounts and Explanation Debit Credit Dec. 31 Requirement 2. In what category and at what value would Bell report the asset on the December 31, 2018, balance sheet? In what account classified as a on the balance sheet as of December 31, 2018. Bell would report the asset at $ The market price change would Requirement 3. What was the net e be reported in the Available-for-Sale Debt Investment account. Bell's net income for the year ended be reported in the Equity InvestmentsGrant account. is $ be reported in the Held-to-Maturity Debt Investment account. be reported in the Trading Debt Investment account. Choose from any list or enter any ! be reported in the Unrealized Holding GainTrading account. be reported in the Unrealized Holding LossTrading account. not be reported
