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lOsighP entMa in.do?invoker-assignments&takeAssignmentSessionlocator-; assignment-take&inprogress-false; Problems eBook Calculator Print Item Fair Value Journal Entries, Available-for-Sale Investments The investments of Steelers Inc. indlude a single investment: 13,000 shares of Bengals Inc, common stock purchased orn share including brokerage share price dedlined to $12 per share AL commission. These shares were dassified as available-for-sale securities. As of the December 31, Year 1, balance sheet date, the malize the entries to acquire the investment on September 12 and record the adjustment to fair value on December 31 er 31, Year 1 Year 1 Sept. 12 Year 1 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 y of the Previous Check My Weonk 2 more Check My Wark uses remaining 2 more Check My Work uses remaining

Explanation / Answer

Journal entry :

Unrealized gain (loss) on available for sale investment is reported in the shareholder's equity section of the balance sheet.

Date accounts & explanation debit credit Year 1, sep 12 Available for Sale securities a/c 182000 Cash a/c 182000 (TO record investment) Year 1, Dec 31 Unrealized loss-other comprehensive income 26000 Available for sale securities a/c 26000 (TO record price declined by investment)

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