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Required information Skip to question [The following information applies to the questions displayed below.] Kitty Company began operations in the current year and acquired short-term

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[The following information applies to the questions displayed below.] Kitty Company began operations in the current year and acquired short-term debt investments in trading securities. The year-end cost and fair values for its portfolio of these debt investments follow.

Portfolio of Trading Securities Cost Fair Value
Tesla Bonds $ 13,800 $ 10,350
Nike Bonds 22,400 23,520
Ford Bonds 5,600 4,480

Prepare journal entry to record the December 31 year-end fair value adjustment for the debt securities.

Journal entry worksheet

  • Record the year-end adjustment to fair value, if any.

Note: Enter debits before credits.

Date General Journal Debit Credit
Dec. 31

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