Answer:
The adjusting entry is shown below.
Explanation:
According to the scenario, the adjusting entry for the given data are as follows:
Dec.31,2018 Net unrealized gain or loss A/c Dr $20,000
To Fair value adjustment A/c $20,000
(Being the fall in value is recorded)
Computation = $600,000 - $580.000 = $20,000
Dec.31,2019 Fair value adjustment A/c Dr $30,000
To Net unrealized gain or loss A/c $30,000
(Being the rise in value is recorded)
Computation = $610,000 - $580,000 = $30,000
