On February 15, Jewel Company buys bonds of Marcelo Corporation for $201,400. The investment is classified as available-for-sale securities. This is the company’s first and only investment in available-for-sale securities. On December 31, the bonds had a fair value of $203,100. The entry to record the year-end adjustment is:

Question

Answer

Debit Cash $1,700; credit Dividend Revenue $1,700.

Answer

Debit Fair Value Adjustment—Available-for-Sale $1,700; credit Unrealized Gain—Equity $1,700.

Answer

Debit Fair Value Adjustment—Available-for-Sale $1,700; credit Interest Revenue $1,700.

Answer

Debit Fair Value Adjustment—Available-for-Sale $1,700; credit Realized Gain—Income $1,700.

Answer

Debit Cash $1,700; credit Gain on Sale of Investments $1,700.

Crowdly

On February 15, Jewel Company buys bonds of Marcelo Corporation for $201,400. Th...

Want instant access to all verified answers on moodle.immaculata.edu?