Final answer:
To record the entry to adjust to the fair value of the investment in FF G Corporation bonds on the date of sale, you would need to review market conditions, calculate the fair value adjustment, and make the necessary journal entry.
Step-by-step explanation:
To record the entry to adjust to fair value the investment in FF G Corporation bonds on the date of sale, you would need to follow certain steps:
- Review market conditions: Assess the current market value of the bonds to determine their fair value.
- Calculate the fair value adjustment: Determine the difference between the fair value and the book value of the investment.
- Make the journal entry: Debit or credit the appropriate accounts (such as 'Fair Value Adjustment' and 'Investment in FF G Corporation bonds') to reflect the fair value adjustment.
It is important to consult your accounting principles and guidelines to ensure an accurate and compliant recording of the fair value adjustment.