EH$\mathrm{.}7($LO $3),$ AP Writing At December $31,2022,$ available$-$for$-$sale debt securities for Gwynn$,$ Inc. are

as follows. The securities are considered to be a long$-$term investment.

Instructions

a$.$ Prepare the adjusting entry at December $31,2022,$ to report the securities at fair value.

b$.$ Show the statement presentation at December $31,2022,$ after adjustment to fair value.

c$.$ Pam Jenks, a member of the board of directors, does not understand the reporting of the unreal$-$

ized gains or losses on trading debt securities and available$-$for$-$sale debt securities$.$ Write a letter to

Ms$.$ Jenks explaining the reporting and the purposes it serves.