securities should be reported at fair value, whereas held-to-maturity securities should be reported at amortized cost. 8. $3,500,000 X 10% = $350,000; $350,000 ÷ 2 = $175,000. Wheeler would make the following entry: Cash ($4,000,000 X 8% X 1/2) 160,000 Debt Investments 15,000 Interest Revenue ($3,500,000 X 10% X 1/2) 175,000 9. Fair Value Adjustment (available-for-sale) 89,000 Unrealized Holding Gain or Loss—Equity [$3,604,000 – ($3,500,000 + $15,000)*] 89,000 *See number…
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