On June 30, a business has the following information regarding its long-term investments that qualify as available for sale securities: Cost Market…

1.    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
Please help create any necessary journal entries to record the adjustment to fair market value on June 30. 

 

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