PierTwo purchased at par 100 $100 5% bonds of Supplier Inc. on January 1. To avoid exposure to fluctuations in the fair value of Supplier Inc. bonds, PierTwo acquires a 12-month put option on January 1 to sell 100 bonds of Supplier Inc. at a price of $100 per bond. The hedge is considered to be highly effective. On December 31, the market price per share of Supplier Inc. bonds fell to $90 per bond while the value of the put option is estimated to be $1,000. For simplicity, ignore interest on the bonds and assume the purchase price of the put option is zero. Required a. Prepare the entry to adjust the investment to fair value on December 31. Note: If a journal entry isn't required, select "N/A-Debit" and "N/A-Credit" as the account names and leave the Dr. and Cr. answers blank (zero). Date Dec. 31 Cash Account Name b. Prepar Note: I Date Dec. 31 Save Inventory Call Option Futures Contract Put Option Interest Rate Swap Contract Fair Value Adjustment-AFS Fair Value Adjustment-Equity Securities Fair Value Adjustment-HTM Fair Value Adjustment-TS Note Payable Cost of Goods Sold Interest Expense Unrealized Gain or LossOCI Gain on Settlement of Call Option-Income Loss on Settlement of Call Option-Income Unrealized Gain or Loss-Income Dr. Cr. 0 0 0 0 e on December 31. bit" and "N/A-Credit" as the account names and leave the Dr. and Cr. answers blank (zero). Dr. Cr. 0 0 0 0 Next >