Question

the company held the following short - term investments in its portfolio of available - for - sale debt securities at december 31. it had no short - term investments in its prior accounting periods.
available - for - sale
securities cost fair value
cbs corporation bonds $ 72,000 $ 70,560
nbc corporation notes 53,000 47,170
abc company bonds 68,000 65,280
enter answers in the tabs below.
prepare the december 31 adjusting entry to report these investments at fair value.
journal entry worksheet
record the year - end adjusting entry for the securities portfolio.
note: enter debits before credits.
date general journal debit credit
december
31

Explanation:

Step1: Calculate the total cost

$$72000 + 53000+68000=\$193000$$

Step2: Calculate the total fair - value

$$70560 + 47170 + 65280=\$182910$$

Step3: Calculate the unrealized loss

$$193000-182910=\$10090$$

Answer:

Date	General Journal	Debit	Credit
	Fair Value Adjustment (Available - for - Sale)		$10090$