Question - 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 me create the necessary journal entries to record the adjustment to fair market value on June 30.