In 2019 a company purchases debt securities at a par value of $100,000 and classifies them as AFS. At the end of the year their market value is $105,000. In 2020 the company sells the securities for $98,000.
Required
Prepare the journal entries to report the above information in 2019 and 2020. For recorded gains and losses, indicate whether they are reported in OCI or in income.

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The Answer of In 2019 a company purchases debt securities at a par value of $100,000 and classifies them as AFS. At the end of the year their market value is $105,000. In 2020 the company sells the securities for $98,000.
Required
Prepare the journal entries to report the above information in 2019 and 2020. For recorded gains and losses, indicate whether they are reported in OCI or in income.

In 2019 a Company Purchases Debt Securities at a Par