Question - On June 30, a business has the following information regarding its long-term investments that qualify as available for sale securities:
|
Cost
|
Market Value
|
|
|
ABC Co.
|
100,000
|
125,000
|
|
XYZ Co.
|
100,000
|
90,000
|
On June 30, the following unadjusted account balances exists:
Fair value adjustment - $5,000 credit
Unrealized loss - $5,000 debit
Required - Prepare any necessary journal entries to record the adjustment to fair market value on June 30.