Equity Securities of Sanchez Inc $\begin{array}{lrr} \text { Short-term Equity Investments } &1,300\\ \text { Unrealized Gain} &&300\\\text { Cash }&&1,000\end{array}$

Equity securities of Sanchez Inc. were purchased as a short-term passive investment by Hayden Company on December 14 for $1,000. On December 31, the market value of those securities is $1,300. Which one of the following adjusting journal entries is appropriate at December 31?
a.
$\begin{array}{lrr} \text { Short-term Equity Investments } &1,300\\ \text { Unrealized Gain} &&300\\\text { Cash }&&1,000\end{array}$

b.
$\begin{array}{lrr} \text { Short-term Equity Investments} &300\\ \text { Unrealized Gain } &&300\\\end{array}$


c.
$\begin{array}{lrr} \text { Short-term Equity Investments } &300\\ \text { Unrealized Price Increase } &&300\\\end{array}$


d. $\begin{array}{lrr} \text { No entry is required. } &\\\end{array}$