QUESTION:

 A company has a long-term investment in a bond with a fair value of $80,000 and an amortized cost of $75,000. What would be the journal entry to record the unrealized gain or loss?

Answer: The journal entry would be: Unrealized gain on investment (income) - $5,000 Investment in bond (asset) - $5,000

Here's the tabulated working calculation for the journal entry to record the unrealized gain or loss:

To record the unrealized gain on the bond investment, we need to credit the unrealized gain on investment account for the difference between the fair value and the amortized cost of the bond ($80,000 - $75,000 = $5,000). We also need to debit the investment in bond account for the same amount.

The journal entry would be:

Debit investment in bond (asset) for $5,000

Credit unrealized gain on investment (income) for $5,000

Therefore, the journal entry to record the unrealized gain or loss would be:

Unrealized gain on investment (income) - $5,000

Investment in bond (asset) - $5,000