Question: During the current year, Patton Consulting Group acquired long-term available-for-sale securities at a $35,000 cost. At its December 31 year-end, these securities had a fair value of $29,000. 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.