Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
on February 15 jewel company buys bonds of Marcelo company for $200,000. The investment is classified as available for sale securities. This is the companies
on February 15 jewel company buys bonds of Marcelo company for $200,000. The investment is classified as available for sale securities. This is the companies first and only investment in available for sale securities. On December 31 the bonds had a fair value of $200,300. The entry to record the year and adjustment is
Debit Cash $300, credit Dividend Revenue $300. Debit Fair Value Adjustment--Available for Sale $300 credit Unrealized Gain-Equity $300, Debit Fair Value Adjustment-Available for Sale $300: credit Interest Revenue $300, Debit Fair Value Adjustment-Available for Sale $300 credit Realized Goin--Income $300. Debit Cash $300, credit Gain on Sale of investments $300
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/66986e5999e77_75366986e593c449.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started