Question

Bawl purchased ABC bonds on 1/1/21. Data regarding these available-for-sale securities follow: Cost MV December 31, 2021 $100,000 $ 91,000 December 31, 2022 100,000 111,000 December 31, 2023 100,000 106,000 The unrealized Gain/Loss reported in OCI of the 2023 Comprehensive Income statement is:

Answer 1

Bawl with ABC bonds

The unrealized Gain/Loss reported in OCI of the 2023 Comprehensive Income statement is:

A Loss of $5,000

Step-by-step explanation:

a) Data and Calculations:

Cost MV Unrealized Profit or (Loss)

December 31, 2021 $100,000 $ 91,000 $9,000 (Loss)

December 31, 2022 100,000 111,000 20,000

December 31, 2023 100,000 106,000 5,000 (Loss)

Available-for-sale Investment

Debit Credit

Dec 31 100,000

Loss 9,000

Dec 31 91,000

Profit 20,000

Dec 31 111,000

Loss 5,000

Dec 31 106,000

The Available-for-sale Investment will show a loss of $5,000 in the Other Comprehensive Income of the 2023 Comprehensive Income Statement based on the yearly adjustments to the account with losses and profits.