Answer:
Journal Entries
Dr. Investment in Apple stock $3,600
Dr. Investment in Under Armour stock $800
Cr. Investment in Chipotle stock $1,700
Cr. Unrealized gain Investments $2,700
Explanation:
The Investments held at the fair value should be revalued at each period end and record the gain or loss arising from the fair value adjustments. This done to present the true position of the investments . Increase in the fair value as compared to prior value or cost will result as gain and decrease as loss.
Following is the working to make fair value adjustment.
Cost Fair Value Difference
Apple stock $5,700 $9,300 Increased by $3,600
Chipotle stock $3,300 $1,600 Decreased by $1,700
Under Armour stock $12,900 $13,700 Increased by $800
