Question
On September 15, Jerome, Inc., paid $8,900 to make a long-term investment in available-for-sale securities by purchasing notes of Topper, Inc. Complete the necessary journal
On September 15, Jerome, Inc., paid $8,900 to make a long-term investment in available-for-sale securities by purchasing notes of Topper, Inc. Complete the necessary journal entry by selecting the account names from the pull-down menus and entering dollar amounts in the debit and credit columns.
Assume that Jerome's available-for-sale portfolio had a total cost of $50,000 and a fair value of $46,000 on December 31 at the end of the first year it held the AFS securities. Complete the necessary adjusting entry selecting the account names from the pull-down menus and entering dollar amounts in the debit and credit columns.
Jerome, Inc., owned a single short-term available-for-sale security with a cost of $40,000 and a fair value of $40,500 at December 31 of the previous year. At that time, an adjusting entry was recorded for the fair value adjustment with a debit to Fair Value AdjustmentAvailable-for-sale for $500 and a credit to Unrealized GainEquity for $500. Jerome sold that security for $39,900 on January 4 of the current year. Complete the necessary journal entry for January 4th by selecting the account names from the pull-down menus and entering the dollar amounts in the debit and credit columns. (Assume that the portion of the entry that removes the balance in the Unrealized GainEquity and Fair Value AdjustmentAvailable-for-sale (ST) accounts will be made in a separate journal entry.)
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