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The trading securities portfolio of Jerome, Inc., had a total cost of $3,000 and a fair value of $2,800 on December 31, which is the first year it held trading securities. Complete the necessary adjusting
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The trading securities portfolio of Jerome, Inc., had a total cost of $3,000 and

a fair value of $2,800 on December 31, which is the first year it held trading
securities. Complete the necessary adjusting entry by selecting the account
names from the pull-down menus and entering dollar amounts in the debit and credit columns

User AlfredoVR
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1 Answer

19 votes
19 votes

Answer and Explanation:

The journal entry is shown below:

Unrealized Loss - Income ($3,000 - $2,800) $200

To Fair value adjustment - trading $200

(being the adjustment to fair value for trading securities is recorded)

Here the unrealized loss would be debited and the fair value adjustment would be credited

User Theron Luhn
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