Element Company Had the Following Long-Term Available-For-Sale Securities in Its

question 192

Essay

Element Company had the following long-term available-for-sale securities in its portfolio at December 31 for each of the years listed.The year-end cost and fair values for its portfolio follow.Beginning with Year 1,prepare the appropriate journal entry to record each year-end market adjustment for these securities.
$\begin{array}{lcc}& & \text { Fair } \\\text { Available-for-Sale Securities } & \text { Cost } & \text { Value }\\\text { Year 1 } & \$ 404,000 & \$ 410,000 \\\text { Year 2 } & 406,000 & 414,000 \\\text { Year 3 } & 461,000 & 472,000\end{array}$

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Definitions:

Ionic

Relating to or involving ions, typically describing chemical bonds formed through the electrostatic attraction between oppositely charged ions.

Coordinate Covalent

A type of chemical bond where both electrons come from the same atom, typically seen in complex ions or molecules where a metal atom is bonded to one or more ligands.

Alkaline Earth Elements

A group of elements in the periodic table comprising beryllium, magnesium, calcium, strontium, barium, and radium, characterized by their two valence electrons.

Transition Metals

Elements found in the central block of the periodic table, characterized by their ability to form variable oxidation states and to create colored compounds.