During the current year, Reed Consulting Group acquired long term available for sale securities at a $ 70,000 cost. At its December 31 year end, these securities had a fair value of $ 58,000. This is the first and only time the company purchased such securities.
1. Prepare the necessary year end adjusting entry related to these securities.
2. Explain how each account used in part 1 is reported in the financial statements.