Current Attempt in Progress Pharoah Company has these data at December 31, 2020, the end of...

  

Transcribed Image Text:

Current Attempt in Progress Pharoah Company has these data at December 31, 2020, the end of its first year of operations. Debt Securities Cost Fair Value Trading $111,600 $130,100 Available-for-sale 101,700 97,700 The available-for-sale securities are held as a long-term investment. Prepare the adjusting entries to report each class of securities at fair value. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. Fair Value Adjustment-Trading 18500 31 Unrealized Gain or Loss-Income (To record trading securities at fair value.) Dec. Unrealized Gain or Loss-Equity 4000 31 Fair Value Adjustment-Available-for-Sale (To record available-for-sale securities at fair value.) 18500 4000 Indicate the statement presentation of each class of securities and the related unrealized gain (loss) accounts. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Pharoah Company (Partial) Balance Sheet December 31, 2020 Current Assets Fair Value Adjustment-Trading Investments Stockholders' Equity Other Revenues and Gains Unrealized Loss on Available-for-Sale Securities $ Pharoah Company Comprehensive Income Statement tA LA $ Pharoah Company Income Statement For the Year Ended December 31, 2020 $ Current Attempt in Progress Pharoah Company has these data at December 31, 2020, the end of its first year of operations. Debt Securities Cost Fair Value Trading $111,600 $130,100 Available-for-sale 101,700 97,700 The available-for-sale securities are held as a long-term investment. Prepare the adjusting entries to report each class of securities at fair value. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. Fair Value Adjustment-Trading 18500 31 Unrealized Gain or Loss-Income (To record trading securities at fair value.) Dec. Unrealized Gain or Loss-Equity 4000 31 Fair Value Adjustment-Available-for-Sale (To record available-for-sale securities at fair value.) 18500 4000 Indicate the statement presentation of each class of securities and the related unrealized gain (loss) accounts. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Pharoah Company (Partial) Balance Sheet December 31, 2020 Current Assets Fair Value Adjustment-Trading Investments Stockholders' Equity Other Revenues and Gains Unrealized Loss on Available-for-Sale Securities $ Pharoah Company Comprehensive Income Statement tA LA $ Pharoah Company Income Statement For the Year Ended December 31, 2020 $

Answer rating: 100% (QA)

1 Debit Credit Fair Value adjustmentTrading 1850000 Unreali... View the full answer