Business Assignment- Cas Investment revenue
Problem 12-7
($ in millions)
December 29
Cash
Investment revenue
December 31
Accrued interest:
Investment revenue receivable - Holistic
Entertainment
Investment revenue receivable - Household
Plastics
Investment revenue
Revaluations:
Net unrealized holding gains and losses—OCI
Fair value adjustment
Fair value adjustment
Net unrealized holding gains and losses—I/S
Note: Securities held-to-maturity are not adjusted to fair value.
Closing entry:
Net unrealized holding gains and losses—I/S (NXS)
Investment revenue
Gain on sale of investments (U.S. Treasury bonds)
Loss on sale of investments (Kansas Abstractors)
Income summary (to balance)
Note: Unlike for securities available-for-sale, unrealized holding gains and losses are included in income for trading securities.
2012
January 7
Cash
Loss on sale of investments (to balance)
Investment in NXS common shares (account balance)
Assuming no other transactions involving trading securities, the 2012 adjusting entry to remove the fair value adjustment associated with the sold securities would be:
December 31
Net unrealized holding gains and losses—I/S
Fair value adjustment (account balance)
USA 
India