Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help me with the journal entries and the correct values for January 03, 2019 10 points S&L Financial buys and sells securities which it
Please help me with the journal entries and the correct values for January 03, 2019
10 points S&L Financial buys and sells securities which it classifies as available-for-sale. On December 27, 2018, S&L purchased Coca-Cola bonds at par for $895,000 and sold the bonds on January 3, 2019, for $905,000. At December 31, the bonds had a fair value of $887,000, and S&L has the intent and ability to hold the investment until fair value recovers. Prepare journal entries to record (a) any unrealized gains or losses occurring in 2018 and (b) the sale of the bonds in 2019, including recognition of any unrealized gains in 2019 prior to sale and reclassification of amounts out of OCI. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No 1 2 3 4 Date December 31, General Journal Reclassification adjustmentOCI 2018 Investment in Coca-Cola bonds January 03, Unrealized holding gainNI 2019 Fair value adjustment January 03, Cash 2019 Gain on sale of investments Investment in Coca-Cola bonds January 03, Cash 2019 Discount on bond investment Investment revenue Debit 8,000 e 18,000 e 10,000 e 8,800 e 1,200 e Credit 8,000 e 18,000 e 10,000 e 10,000 e
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started