Teal Company has the following investments as of December 3 1 , 2 0 2 5
Question:
Teal Company has the following investments as of December
Investments in common stock of Laser Company
$
Investment in debt securities of FourSquare Company
In both investments, the carrying value and the fair value of these two investments are the same at December Teal's stock
investments do not result in significant influence on the operations of Laser Company. Teal's debt investment is considered heldto
maturity. At December the shares in Laser Company are valued at $; the debt securities of FourSquare are valued
at $ and are considered impaired.
a
Prepare the journal entry to record the impairment of the debt securities at December List debit entry before credit entry.
Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select No Entry"
for the account titles and enter for the amounts.
Date
Account Titles and Explanation
Debit
Credit
Dec.
Fair Value Adjustment
Intermediate Accounting
ISBN: 9781119790976
18th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield