Please answer to question E13-13

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Thank you

ci ecord the preceding information. What is the balance in the Unrealized Holding Gain /Loss account on December 31, 2019? 200. The 3. Next Level What justification does the FASB give for its treatment of unrealized holding gains and losses for ly, on the available-for-sale securities? gio Com- E13-13 Available-for-Sale Securities At the end of 2018, Terry Company prepared the following schedule of invest- espective LO 13.4 ments in available-for-sale debt securities (all of which were acquired at par value): all of the Company Amortized miums. Cost 12/31/18 Cumulative Change Fair Value in Fair Value Morgan Company $35,000 annual Nance Company $34,200 50,000 $ (800) Totals 53, 100 3,100 $85,000 $87,300 $2,300 During 2019, the following transactions occurred: ts port- July 1 Purchased Oscar Company debt securities with a par value of 100,000 for $98,000. The securities carry an annual interest rate of 10%, mature on December 31, 2021, and pay interest seminannually on July 1 and st rate, December 31. Terry uses the straight-line method to amortize any discounts or premiums. 2018 Oct. 11 Sold all of the Morgan Company securities for $33,000 plus interest of $1,300. Dec. 31 Received interest of $6,000 on the Nance Company and Oscar Company debt securities, and the following yearend total market values were available: Nance Company debt securities, $55,000; Oscar Company debt securities, $96,000. Required: 1. Prepare journal entries to record the preceding information. 2. Show how the preceding items are reported on Terry's December 31, 2019, balance sheet. Assume all invest- ments are noncurrent . 3. Next Level If Terry uses IFRS, how would the accounting for investments be different from U.S. GAAP? The ally, E13-14 Transfer between Categories On December 31, 2018, Leslie Company held an investment in bonds of Kaufmann LO 13.5 Company which it categorized as being held to maturity. At that time, the 8%, $100,000 face value bonds had a carry carrying value of $107,023.56 and were being amortized using the effective interest method based on a market es of is paid annually each December 31