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Bayne Inc.bought bonds at a cost of $12,000 on March 1, 2011.At the end of the first quarter, March 31, Waba prepared financial statements and the bonds had a market value of $12,800.Bayne sold the bonds for $12,100 on May 18 before receiving any interest for them.
-On their first quarter financial statements prepared for the period ending March 31, Bayne should have recorded:
A)An unrealized gain of $800
B)An unrealized loss of $300
C)A realized gain of $300
D)no adjustment was required

Question

Use the following information to answer questions 
Bayne Inc.bought bonds at a cost of $12,000 on March 1, 2011.At the end of the first quarter, March 31, Waba prepared financial statements and the bonds had a market value of $12,800.Bayne sold the bonds for $12,100 on May 18 before receiving any interest for them.
-On their first quarter financial statements prepared for the period ending March 31, Bayne should have recorded:
A)An unrealized gain of $800
B)An unrealized loss of $300
C)A realized gain of $300
D)no adjustment was required

Quizplus · Accepted Answer

Bayne Inc. should have recorded an unrealized gain of $800 on their first quarter financial statements prepared for the period ending March 31, as the market value of the bonds had increased from $12,000 to $12,800.

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