7.On December 31, 2010, available-for-sale securities with an original cost of $14,000 have a carrying value on the balance sheet equal to their market value of $16,000. On January 11, 2011, those securities are sold for $18,000. Give the appropriate entry to record the sale of the available-for-sale securities.
8.On December 31, 2010, trading securities with an original cost of $10,000 have a carrying value on the balance sheet equal to their market value of $12,000. On January 11, 2011, those trading securities are sold for $15,000. Prepare the appropriate entry to record the sale of the trading securities.
9.On December 31, 2010, trading securities with an original cost of $10,000 have a carrying value on the balance sheet equal to their market value of $12,000. On January 5, 2011, those trading securities are sold for $10,000. Give the appropriate entry to record the sale of the trading securities.
10.On December 31, 2010, trading securities with an original cost of $45,000 have a market value of $47,000. On January 5, 2011, those trading securities are sold for $41,000. Determine the gains or losses in 2010 and 2011 associated with these trading securities. Clearly label whether the gains or losses are realized or unrealized. Name the financial statement on which each is reported.
11.On December 31, 2010, available-for-sale securities with an original cost of $100,000 have a market value of $110,000. On January 11, 2011, the available-for-sale securities are sold for $130,000. Determine the gains or losses in 2010 and 2011 associated with these securities that must be reported on the income statements. Indicate whether the gains or losses are realized or unrealized.