Answer:
Answer for the question:
Loreal-American Corporation purchased several marketable securities during 2018. At December 31, 2018, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2017, and all are considered securities available-for-sale.
Cost Fair Value Unrealized Holding
Gain (Loss)
Short term:
Blair, Inc. $ 486,000 $ 402,000 $ (84,000 )
ANC Corporation 453,000 486,000 33,000
Totals $ 939,000 $ 888,000 $ (51,000 )
Long term:
Drake Corporation $ 486,000 $ 563,000 $ 77,000
Aaron Industries 717,000 663,000 (54,000 )
Totals $ 1,203,000 $ 1,226,000 $ 23,000
Required:
1. Prepare appropriate adjusting entries at December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
2. What amounts would be reported in the income statement at December 31, 2018, as a result of these adjusting entries?
is given in the attachment.
Explanation:
