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This period, Amadeus Co. purchased its only available-for-sale investment in the notes of Bach Co. for $83,000. The period-end fair value of these notes is$84,500. Amadeus records a

  • a. Credit to Unrealized Gain—Equity for $1,500.
  • b. Debit to Unrealized Loss—Equity for$1,500.
  • c. Debit to Investment Revenue for $1,500.
  • d. Credit to Fair Value Adjustment—Available-for-Sale for$3,500.
  • e. Credit to Cash for $1,500.


Answered 11 months ago
Answered 11 months ago
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In this exercise, we are asked to determine the debit or credit recorded in the journal entry.

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