Some of Crane Corporation's investments in debt securities are classified as trading securities and some are classified as available-for- sale. The cost and fair value of each category at December 31, 2022, were as follows. Cost Fair Value Unrealized Gain (Loss) Trading securities $96,500 $85,000 $(11,500) Available-for-sale securities $60,000 $63,000 $3,000 At December 31, 2021, the Fair Value Adjustment-Trading account had a debit balance of $2,100, and the Fair Value Adjustment- Available-for-Sale account had a credit balance of $7,200. Prepare the required journal entries for each group of securities for December 31, 2022. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter O for the amounts.)

Some of Crane Corporation's investments in debt securities are classified as trading securities and some are classified as available-for- sale. The cost and fair value of each category at December 31, 2022, were as follows. Cost Fair Value Unrealized Gain (Loss) Trading securities $96,500 $85,000 $(11,500) Available-for-sale securities $60,000 $63,000 $3,000 At December 31, 2021, the Fair Value Adjustment-Trading account had a debit balance of $2,100, and the Fair Value Adjustment- Available-for-Sale account had a credit balance of $7,200. Prepare the required journal entries for each group of securities for December 31, 2022. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter O for the amounts.)

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 7MCQ

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