Answer:
Find below the answers and explanation
Explanation:
First we calculate the Loss or gain on each security
(Subtract the fair value from the security cost
FOR TESLA BOND
Securities Cost = $ 13,500
Fair Value = $ 10,125
Gain or Loss = $13500 - $ 10,125
= $3,375
FOR NIKE BOND
Securities Cost = $22,000
Fair Value = $23,100
Gain or Loss = $22,000 - $23,100
= −1,100
FOR FORD BOND
Securities Cost = $5,500
Fair Value = $4,400
Gain or Loss = $5,500 - $4,400
= $1,100
record the securities at fair value in the balance sheet with their respective gain or loss in profit and loss column by making these entries in the journal
1. For TESLA BOND
Loss on revaluation of investment Debit:$3,375
Investment in Telsa bond Credit: $3,375
To record the loss on telsa investment.
2. FOR NIKE BOND
Nike Investment Debit: −$1,100
Gain on revaluation of investment Credit: −$1,100
To record the Gain on Nike investment.
3. FOR FORD BOND
Loss on revaluation of investment Debit: $1,100
Investment in Ford bond Credit: $1,100
To record the loss on Ford investment.
