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On December 31, 2010, Available-For-Sale Securities with an Original Cost

question 103

Essay

On December 31, 2010, available-for-sale securities with an original cost of $14,000 have a carrying value on the balance sheet equal to their market value of $16,000. On January 11, 2011, those securities are sold for $18,000. Give the appropriate entry to record the sale of the available-for-sale securities.


Definitions:

Deficiency

A shortfall or lack in quantity or quality, potentially referring to aspects such as nutrients, finances, or resources.

Partner Capital

The amount of equity owned by each partner in a partnership, representing their portion of the total investment in the business.

Loss On Realization

Occurs when the actual amount received from the sale of an asset is less than its carrying amount on the books.

Statement Of Partnership Equity

A summary of the changes in each partner’s capital in a partnership that have occurred during a specific period of time.

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