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The trading securities portfolio of Jerome, Inc., had a total cost of $3,000 and
a fair value of $2,800 on December 31, which is the first year it held trading
securities. Complete the necessary adjusting entry by selecting the account
names from the pull-down menus and entering dollar amounts in the debit and credit columns

Respuesta :

Answer and Explanation:

The journal entry is shown below:

Unrealized Loss - Income ($3,000 - $2,800) $200

       To Fair value adjustment - trading $200

(being the adjustment to fair value for trading securities is recorded)

Here the unrealized loss would be debited and the fair value adjustment would be credited

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