Question
On January 1, Year 9, the first day of its fiscal year, Noel company purchased 2,000 shares of available for sale securities at a price
On January 1, Year 9, the first day of its fiscal year, Noel company purchased 2,000 shares of available for sale securities at a price of $10 per share. These securities had a fair value of $24,000 and $30,000 on December 31, Year 9, and December 31, Year 10, respectively. No dividends were paid, and all of the securities were sold on December 31, Year 10. Noel recognizes all holding gains and losses on available for sale securities before recognizing realized gain.
Prepare the journal entries, if any, necessary for December 31, Year 9 and December 31, Year 10, that relate to these available-for-sale securities on december 31, Year 10. Ignore the income tax effects.
On January 1, Year 9, first day of its fiscal year, Noel Company shares sec ilable-for-sale securities at a price of $10 per share. purchased 2,000 and of available-for-sale These s had a fair value of $24,000 and $30,000 on December 31, Year 9, December No and all of the securities were sold December 31 Noel recognizes all holding dividends were paid, realized gain gains and losses on available-for-sale securities before recognizing Prepare the journal entries, if any, necessary for December 31, Year 9, and December 31, Year 10, that relate to these available-for-sale securities. Also prepare the journal entry to record the sale of the securities on December Year 10 Ignore income tax effects. To prepare the entries, in the Account column. select the appropriate account from the list provided. Then enter the correct amounts in the Debit or Credit columns. Each choice may be used once, more than once, or not at all Account Choices Debit Credit December 31, Year 9 A) No entry required B) Unrealized holding gain-OCI C) Unrealized ho gain-earnings December 31, Year 10 E) Unrealized holding loss-earnings F) Securities fair value adjustment Sale of the securities G) Cash H) Available-for-sale securities Gain on sale of securities
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