Question

at december 31, 2023, blue corp's stock investement portfolio, which is being accounted for by the fair value through net income (fv-ni) model, shows a general ledger balance of $319500. it is determined that the fair value of the securities is actually $327200. the entry to adjust the portfolio to fair value will include a:_______

Answer 1

The entry to adjust the stock investment portfolio to fair value will include a debit to the portfolio account and a credit to the unrealized gain account.

Step-by-step explanation:

To adjust the stock investment portfolio to fair value, the entry will include a debit to the portfolio account and a credit to the unrealized gain account.

In this case, the portfolio account has a general ledger balance of $319,500, below the actual fair value of $327,200. Therefore, the entry to adjust the portfolio to fair value will be:

Debit Portfolio Account: $7,700
Credit Unrealized Gain Account: $7,700