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2019 was $38,000. of the debt securities as trading. Assume that Sumner uses the straight-line method to amortize any discounts or premiums. Required: 1. Prepare the joumal entries necessary to record the purchase of the investments on January 1,2020 , the annual interest payments on December 31, 2020, and the adjusting entry needed on December 31, 2020. 2. What would Sumner disclose on its December 31, 2020, balance sheet related to these investments? Chapter 13 - Part 2 eBook ASSETS 111 Cash 113 Investment in Trading Securities 114 Investment in Available-for-Sale Securities 119 Allowance for Change in Fair Value of Investment 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 181 Equipment 189 Accumulated Depreciation 191 Investment in Held-to-Maturity Debt Securities LIABILITIES 211 Accounts Payable 231 Salaries Payable 250 Unearned Revenue 261 Income Taxes Payable EQUITY 311 Common Stock 331 Retained Earnings 390 Unrealized Holding Gain/Loss: Trading Securities 391 Unrealized Holding Gain/Loss: Available-for-Sale Securities REVENUE 411 Sales Revenue 431 Interest Income 441 Gain on Sale of Trading Securities EXPENSES 500 Cost of Goods Sold 511 Insurance Expense 512 Utilities Expense 521 Salaries Expense 532 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses 895 Loss on Sale of Trading Securities 910 Income Tax Expense Check My Work 4 more Check My Work uses remaining. Previous Next All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback. 2019 was $38,000. of the debt securities as trading. Assume that Sumner uses the straight-line method to amortize any discounts or premiums. Required: 1. Prepare the joumal entries necessary to record the purchase of the investments on January 1,2020 , the annual interest payments on December 31, 2020, and the adjusting entry needed on December 31, 2020. 2. What would Sumner disclose on its December 31, 2020, balance sheet related to these investments? Chapter 13 - Part 2 eBook ASSETS 111 Cash 113 Investment in Trading Securities 114 Investment in Available-for-Sale Securities 119 Allowance for Change in Fair Value of Investment 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 181 Equipment 189 Accumulated Depreciation 191 Investment in Held-to-Maturity Debt Securities LIABILITIES 211 Accounts Payable 231 Salaries Payable 250 Unearned Revenue 261 Income Taxes Payable EQUITY 311 Common Stock 331 Retained Earnings 390 Unrealized Holding Gain/Loss: Trading Securities 391 Unrealized Holding Gain/Loss: Available-for-Sale Securities REVENUE 411 Sales Revenue 431 Interest Income 441 Gain on Sale of Trading Securities EXPENSES 500 Cost of Goods Sold 511 Insurance Expense 512 Utilities Expense 521 Salaries Expense 532 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses 895 Loss on Sale of Trading Securities 910 Income Tax Expense Check My Work 4 more Check My Work uses remaining. Previous Next All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback

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