King George Company has these data at December 31, 2017: $\begin{array}{lrr}\text { Debt Securities } & \text { Cost } & \text { Fair Value }\
\text { Trading } & \$ 110,000 & \$ 119,000 \
\text { Available-for-sale } & 100,000 & 95,000
\end{array}$ The available-for-sale securities are held as a long-term investment.
Instructions
(a) Prepare the adjusting entries to report each class of securities at fair value.
(b) Indicate the statement presentation of each class of securities and the related unrealized gain (loss) accounts.

Question

Quizplus · Accepted Answer

The Answer of King George Company has these data at December 31, 2017: $\begin{array}{lrr}\text { Debt Securities } & \text { Cost } & \text { Fair Value }\
\text { Trading } & \$ 110,000 & \$ 119,000 \
\text { Available-for-sale } & 100,000 & 95,000
\end{array}$ The available-for-sale securities are held as a long-term investment.
Instructions
(a) Prepare the adjusting entries to report each class of securities at fair value.
(b) Indicate the statement presentation of each class of securities and the related unrealized gain (loss) accounts.

King George Company Has These Data at December 31, 2017