33,100 shares of Bengals Inc. common stock purchased on September 12, 2016, for
ID: 2490006 • Letter: 3
Question
33,100 shares of Bengals Inc. common stock purchased on September 12, 2016, for $13 per share including brokerage commission. These shares were classified as available-for-sale securities. As of the December 31, 2016, balance sheet date, the share price declined to $11 per share.
Required:
A. Journalize the entries to acquire the investment on September 12 and record the adjustment to fair value on December 31, 2016. Refer to the Chart of Accounts for exact wording of account titles. Date Description Debit CreditExplanation / Answer
Date Accounts Titles and explanation Ref. Debit $ Credit $ Sep 12, 2016 Investment - Available for Sales 141 430300 Cash 110 430300 Dec 31, 2016 Unrealised Loss on Available for Sales Investments 350 66200 Valuation Allowance for Available for Sales Investments 166 66200 (adjustment for the fair value)
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.