Available-for-sale securities were purchased on May 2 for $1,000. On December 31, the market value of those securities is $1,100. Which of the following is part of the adjusting entry necessary on December 31?
A) Debit Unrealized Gain on Available-for-Sale Securities for $1,100
B) Debit Realized Gain on Available-for-Sale Securities for $100
C) Credit Available-for-Sale Securities for $100
D) Credit Unrealized Gain on Available-for-Sale Securities for $100
Correct Answer:
Verified
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