Reference no: EM133183049

Question - On January 1, Year 9, the first day of its fiscal year, Noel Company purchased 2,000 debt securities that were classified as available-for-sale securities at a total price of $20,000. These securities had a fair value of $24,000 and $30,000 on December 31, Year 9, and December 31, Year 10, respectively. The changes in the fair value of the securities are not due to credit losses. All of the securities were sold on December 31, Year 10. Noel recognizes all holding gains and losses on available-for-sale securities before recognizing realized gain.

You are preparing journal entries to the general ledger that relate to these available-for-sale securities.

To prepare each required journal entry:

Click on a cell in the Account Name column and select from the option list the appropriate account. An account may be used once, more than once, or not at all.

Enter the corresponding debit or credit amount in the associated column.

Round all amounts to the nearest whole number.

Not all rows in the table might be needed to complete each journal entry.

If no journal entry is needed, check the "No entry required" box at the top of the table as your response.

Required -

1. Prepare the journal entries for December 31, Year 9, that relate to these available-for-sale securities, if any.

2. Prepare the pre-sale journal entries for December 31, Year 10, that relate to these available-for-sale securities, if any.

3. Prepare the journal entries to record the sale of securities on December 31, Year 10. Ignore any income tax effects.