In its first year of operations, Logic Co. purchased bonds of Waterford Co. with a cost of $125,000 and a year-end fair value of $123,700. Logic also purchased bonds of Jasper Co. with a cost of $25,000 and a year-end fair value of $26,100. These are classified as long-term available-for-sale securities. Prepare the journal entry to record the market value of the investments as of its December 31 year-end.
What will be an ideal response?
| Dec 31 | Unrealized Loss-Equity | 200 | ? |
| ? | Fair value Adjustment-Available-for-Sale (LT) | ? | 200 |
| ? | ? | Fair | Holding | ? |
| ? | Cost | Value | gain (loss) | ? |
| Waterford Co. bonds | $125,000 | $123,700 | $(1,300 | ) |
| Jasper Co. bonds | 25,000 | 26,100 | 1,100 | ? |
| Total | $150,000 | $149,800 | $ (200 | ) |
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