The accounting records of Jamaican Importers, Inc., at January 1, 2018, included the following: Assets: Investment in IBM common shares$1,395,000 Less: Fair value adjustment (150,000) $1,245,000 No changes occurred during 2018 in the investment portfolio.

Required: Prepare appropriate adjusting entry(s) at December 31, 2018, assuming the fair value of the IBM common shares was: $1,187,000 $1,287,000 $1,425,000

unrealized loss   58,000 debit

      investment on IBM       58,000 credit

--to record for a--

investment on IBM       42,000 debit

         unrealized loss              42,000 credit

--to record for b--

investment on IBM     200,000 debit

         unrealized loss             150,000 credit

         unrealized gain              50,000 credit    

--to record for c--

Explanation:

a) 1,187,000 - 1,245,000 = -58,000

as the investment decrased again, we post an unrealized loss to OCI as  by 58,000

b) 1,287,000 - 1,245,000  = 42,000

as there is an urealized loss yet to realized swe will reduce it. As far as the stock investment increasetheir valeu this loss will be write-off

c) 1,425,000  - 1,245,000 = 200,000

here we have enought to offset the unealized loss entirely. And even recognize an unrealzied gain.

answer; exemplars;