s

Fair Value Journal Entries, Available-for-Sale Investments The investments of Steelers Inc. include a single investment: $400,000 of Bengals Inc. 5% bonds purchased at 100 on January 1,20Y. These bonds were classified as available-for-sale securities. As of the December 31,20Y, balance sheet date, the fair value of the bonds declined to $392,800. a. Journalize the entries to acquire the investment on January 1,20Y7, and record the adjustment to fair value on December 31 , 20Y7. If an amount box does not require an entry, leave it blank. 20Y7 Jan. 1 20Y7 Dec. 31 b. How is the unrealized gain or loss for available-for-sale investments disclosed on the financial statements? Unrealized Gain (Loss) on Available-for-Sale Investments is reported in the of the