Blossom Company has these data at December $31,2022,$ the end of its first year of operations.

The available$-$for$-$sale securities are held as a long$-$term investment.

$($a$)$

Your answer is correct.

Prepare the adjusting entries to report each class of securities at fair value. $($Credit account titles are

automatically indented when the amount is entered. Do not indent manually. If no entry is

required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Date Account Titles and Explanation

Debit

Dec.

Fair Value Adjustment$-$Trading

$31$

Unrealized Gain or Loss$-$Income

$($To record unrealized gain$/$loss on trading securities$)$

Unrealized Gain or Loss$-$Equity

Fair Value Adjustment$-$Available$-$for$-$Sale

$($To record unrealized gain$/$loss on available$-$for$-$sale

securities$)$

eTextbook and Media

List of Accounts

$($b$)$

Your answer is partially correct.

Indicate the statement presentation of each class of securities and the related unrealized gain $($loss$)$

accounts. $($Enter negative amounts using either a negative sign preceding the number e$.$g$.-45$ or

parentheses e$.$g$.(45).)$

Blossom Company

$($Partial$)$ Balance Sheet

Current Assets

Fair Value Adjustment$-$Stock

Investments

Fair Value Adjustment$-$Available$-$for$-$Sale

Stockholders' Equity