During the current year, Reed Consulting acquired long-term available-for-sale debt securities on July 1 at a $73,000 cost. At its December 31 year-end, these securities had a fair value of $60,700. This is the first and only time the company purchased such securities. Required: 1. Prepare the July 1 entry to record the purchase of these debt securities. 2. Prepare the year-end adjusting entry related to these securities.

Journal entry worksheet Record purchase of available-for-sale securities. Note: Enter debits before credits. Date General Journal Debit Credit Jul 01 Record entry Clear entry View general journal Journal entry worksheet Record the year-end adjusting entry for the securities portfolio. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal