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

question 14

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.

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Definitions:

Paid Twice

A situation where an individual or entity receives payment for the same service or goods more than once.

Altered Amount

A value or figure that has been modified or changed, usually in the context of financial transactions, documents, or reports, to differ from its original state.

Customer's Negligence

The failure of a customer to exercise reasonable care, leading to loss or damage.

Electronic Banking

The conduct of banking transactions through electronic means, such as online banking, mobile apps, and ATMs, rather than traditional in-person methods.