Whispering Inc.
Balance Sheet
As of January 1, 2025
Assets
Equity
Cash
$48,800
Common stock
$257,600
Debt investments (available-for-sale) 216,700
Accumulated other comprehensive income
7,900
Total
$265,500
Total
$265,500
The accumulated other comprehensive income related to unrealized holding gains on available-for-sale debt securities. The fair value
of Whispering Inc's available-for-sale debt securities at December 31, 2025, was $200,800; its cost was $136,900. No securities were
purchased during the year. Whispering Inc's income statement for 2025 was as follows. (Ignore income taxes.)
Whispering Inc.
Income Statement
As of January 1, 2025
Dividend revenue
$5,400
Gain on sale of investments
32,100
Net income
$37,500
(a)
Prepare the journal entry to record the sale of the available-for-sale debt securities in 2025. (List all debit entries before credit
entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No
Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation
Debit
Credit
eTextbook and Media
List of Accounts
Save for Later
Attempts: 0 of 2 used Submit Answer