contestada

On February 18, 2021, Union Corporation purchased 2,079 IBM bonds as a long-term investment at their face value for a total of $2,079,000. Union will hold the bonds indefinitely, and may sell them if their price increases sufficiently. On December 31, 2021, and December 31, 2022, the market value of the bonds was $2,025,000 and $2,106,000, respectively.
Required: 2. & 3. Prepare the adjusting entry for December 31, 2021 and 2022. (If no entry is required for a transaction/event, select "No Journal entry required" In the first account field.)

Respuesta :

Tundexi

Answer:

Date              General journal                                       Debit        Credit

Dec 31, 21  Unrealized holding gains/losses - OCI   $54,000

                          Fair value adjustment                                         $54,000

                  ($2,079,000-$2,025,000)

Dec 31, 22   Fair value adjustment                             $81,000

                         Unrealized holding gains or losses - OCI           $81,000

                    ($2,106,000-$2,025,000)

Otras preguntas