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Prepare journal entries to record (a) any unrealized gains or losses occurring in 2021 and (b) the sale of the bonds in 2022, including recognition
Prepare journal entries to record (a) any unrealized gains or losses occurring in 2021 and (b) the sale of the bonds in 2022, including recognition of any unrealized gains in 2022 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.) View transaction list X 1 > Record the entry for fair value adjustment of December 31, 2021. 2 Record the entry to adjust to fair value on the date of sale. 3 Record the entry to reverse the previous fair value adjustment. Credit 4 Record the entry for sale of investment in Coca Cola bonds. Note : journal entry has been entered Record entry Clear entry View general journal S&L Financial buys and sells securities which it classifies as available-for-sale. On December 27, 2021, S&L purchased Coca- Cola bonds at par for $875,000 and sold the bonds on January 3, 2022, for $880,000. At December 31, the bonds had a fair value of $873,000, and S&L has the intent and ability to hold the investment until fair value recovers. What pretax amounts did S&L include in its 2021 and 2022 net income as a result of this investment? (Enter all amounts as positive values.) Pretax amount 2021 2022 S&L Financial buys and sells securities that it typically classifies as available-for-sale. On December 27, 2021, S&L purchased Coca- Cola bonds at par for $875,000 and sold the bonds on January 3, 2022, for $880,000. At December 31, the bonds had a fair value of $873,000. When it purchased the Coca-Cola bonds, S&L Financial decided to elect the fair value option for this investment. What pretax amounts did S&L include in its 2021 and 2022 net income as a result of this investment (ignoring interest)? (Enter all amounts as positive values.) Pretax Amount 2021 2022
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