Godfrey Corporation holds, as a long-term investment, available-for-sale securities costing $65,350. At December 31, 2015, the fair value of the securities is $59,932.
Prepare the adjusting entry to record the securities at fair value.
Can someone please help me? Please? Thank you in advance.
Prof
Are you asking for help or are you asking for a solution to your homework? If you want help, you should show your work and you can get help. If you just want someone to do your work, that is not help, you would learn nothing and it would be a disservice to you. Using another person's solution is plagiarism and is unethical. You could at least make an attempt at answering the questions.
Don't you have any idea what to do? What is it you don't understand? Is there a loss or gain from the change in market value? Which is it. Suppose it is a gain; do you debit it or credit it? If it is a loss do you record a debit or credit for the loss? If you can't do that much, why are you in the class. What does your textbook say about this?
dr. Unrealized loss in market value of securities . . . ???
cr. . . . . .Allowance for decline in market value . . . .???
Do you think you can calculate the number? If not, drop the class now.