Loreal-American Corporation purchased several marketable securities during 2021. At December 31, 2021, the company had the investments in bonds listed below. None was held at the last reporting date,...


Loreal-American Corporation purchased several marketable securities during 2021. At December 31, 2021, the company had the<br>investments in bonds listed below. None was held at the last reporting date, December 31, 2020, and all are considered securities<br>available-for-sale.<br>Unrealized Holding<br>Gain (Loss)<br>Cost<br>Fair Value<br>Short term:<br>Blair, Inc.<br>ANC Corporation<br>$ 484,000<br>452,000<br>$ 403,000<br>484,000<br>$(81,000)<br>32,000<br>Totals<br>$ 936,000<br>$ 887,000<br>$(49,000)<br>Long term:<br>Drake Corporation<br>$ 484,000<br>718,000<br>$ 562,000<br>$ 78,000<br>(56,000)<br>$ 22,000<br>Aaron Industries<br>662,000<br>Totals<br>$1,202,000 $1,224,000<br>Required:<br>1. Prepare appropriate adjusting entries at December 31, 2021.<br>2. What amount would be reported in the income statement at December 31, 2021, as a result of the adjusting entry?<br>Answer is complete but not entirely correct.<br>Complete this question by entering your answers in the tabs below.<br>Required 1<br>Required 2<br>What amount would be reported in the income statement at December 31, 2021, as a result of the adjusting entry?<br>Amount<br>$(27,000)<br>< Required 1<br>Required 2><br>

Extracted text: Loreal-American Corporation purchased several marketable securities during 2021. At December 31, 2021, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2020, and all are considered securities available-for-sale. Unrealized Holding Gain (Loss) Cost Fair Value Short term: Blair, Inc. ANC Corporation $ 484,000 452,000 $ 403,000 484,000 $(81,000) 32,000 Totals $ 936,000 $ 887,000 $(49,000) Long term: Drake Corporation $ 484,000 718,000 $ 562,000 $ 78,000 (56,000) $ 22,000 Aaron Industries 662,000 Totals $1,202,000 $1,224,000 Required: 1. Prepare appropriate adjusting entries at December 31, 2021. 2. What amount would be reported in the income statement at December 31, 2021, as a result of the adjusting entry? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 What amount would be reported in the income statement at December 31, 2021, as a result of the adjusting entry? Amount $(27,000) < required="" 1="" required="" 2="">

Jun 10, 2022
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