On February 18, 2021, Joey Co. purchased Debt of IBM as a long-term investment for...
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On February 18, 2021, Joey Co. purchased Debt of IBM as a long-term investment for $60 Million at par. Joey Co. does not intend to hold this Debt Investment till maturity but also, does not intend to sell it in the short-term. On December 31, 2021, and December 31, 2022, the market value of Joeys Cos Debt Investment is $58 Million and $61 Million, respectively. Required:
1. What is appropriate reporting category for this investment? Why?
2. Prepare the adjusting entry for December 31, 2021?
3. Prepare the adjusting entry for December 31, 2022?
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