Question
Please help me with where I have question marks. S&L Financial buys and sells securities expecting to earn profits on short-term differences in price. On
Please help me with where I have question marks.
S&L Financial buys and sells securities expecting to earn profits on short-term differences in price. On December 27, 2018, S&L purchased Coca-Cola bonds at par for $886,000 and sold the bonds on January 3, 2019, for $892,500. At December 31, the bonds had a fair value of $882,000. Prepare journal entries to record (a) any unrealized gains or losses occurring in 2018 and (b) the sale of the bonds in 2019. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer is complete but not entirely correct.
No | Date | General Journal | Debit | Credit |
1 | December 31, 2018 | Unrealized holding lossNI | 4,000 | |
1 | Fair value adjustment | 4,000 | ||
2 | January 03, 2019 | Fair value adjustment | ???? | ? |
2 | Unrealized holding gainNI | ????? | ||
3 | January 03, 2019 | Cash | 892,500 | |
3 | Investment in Coca-Cola bonds | 886,000 | ||
3 | ????????????????????? | 6,500 |
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