QS C-8 Recording fair value adjustment for available-for-sale debt securities LO P3 During the current year, Reed Consulting acquired long-term available-for-sale debt securities on July 1 at a $74,000 cost. At its December 31 year-end, these securities had a fair value of $61,600. 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. X Answer is complete but not entirely correct. No Credit Date Jul 01 General Journal Fair value adjustment - Available-for-sale Debit 74,000 Cash 74,000 Dec 31 12,400 Unrealized loss - Equity Fair value adjustment - Available-for-sale 12,400