FKG Inc. carries the following debt investments on its books at December 31, 2017, and December 31, 2018. All securities were purchased during 2017. Required:
(1.) Prepare the necessary journal entries for FKG on December 31, 2017, and December 31, 2018.
(2.) What net effect would the valuation of these debt investments have on 2017 net income?
(3.) What net effect would the valuation of these debt investments have on 2018 net income?

Question

FKG Inc. carries the following debt investments on its books at December 31, 2017, and December 31, 2018. All securities were purchased during 2017.  Required:
(1.) Prepare the necessary journal entries for FKG on December 31, 2017, and December 31, 2018.
(2.) What net effect would the valuation of these debt investments have on 2017 net income?
(3.) What net effect would the valuation of these debt investments have on 2018 net income?

Quizplus · Accepted Answer

The Answer of FKG Inc. carries the following debt investments on its books at December 31, 2017, and December 31, 2018. All securities were purchased during 2017.  Required:
(1.) Prepare the necessary journal entries for FKG on December 31, 2017, and December 31, 2018.
(2.) What net effect would the valuation of these debt investments have on 2017 net income?
(3.) What net effect would the valuation of these debt investments have on 2018 net income?

FKG Inc Carries the Following Debt Investments on Its Books at at December