Question: When the stock price has risen $1,000 at the end of the year, the adjusting entry would be journalized as follows: ----------------------------------- / ------------------------------ Allowance

When the stock price has risen $1,000 at the end of the year, the adjusting entry would be journalized as follows:

----------------------------------- / ------------------------------

Allowance to adjust short-Term investment to market $1,000

Unrealized Gain on investments $1,000

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Is the journal entry recorded above accurate? If not, what is the correct entry? Explain your answer.

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