Question

In its first year of operations, Crane Corporation purchased, as a long-term investment, available-for-sale debt securities...

In its first year of operations, Crane Corporation purchased, as a long-term investment, available-for-sale debt securities costing $66,000. At December 31, 2020, the fair value of the securities is $61,400.

Prepare the adjusting entry to record the securities at fair value. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Date

Account Titles and Explanation

Debit

Credit

Dec. 31
Business   Accounting   
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Available for securities are debt or equity securities which was purchased thinking that securities will be sold before maturity.These securities are shown at fair value.Unrealized gain or loss equity calculated and shown in balance sheet under the equity section.Unrealized gain or loss equity is calculated by deducting the fair value of securities and cost price of investment - securities available for sale.

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