Answer:
Account Debit Credit
Unrealized loss (Equity) $12,000
Fair Value adjustment (Avaliable $12,000
for sale)
Explanation:
Given Data:
Long-term available-for-sale securities=$70,000
December 31, Securities fair values=$58,000
Required:
The necessary year-end adjusting entry related to these securities.
Solution:
Unrealized Loss occurred=$70,000-$58,000
unrealized Loss occurred=$12,000
Adjusting entry:
Account Debit Credit
Unrealized loss (Equity) $12,000
Fair Value adjustment (Avaliable $12,000
for sale)
