! Review 1 Do I1! 6 3a Some of Tollakson Corporation\'s evestment securties are

Question

! Review 1 Do I1! 6 3a Some of Tollakson Corporation's evestment securties are classned as trading securities and some are clsssified as avaiable-for-sale. The cost and far value of each category at Decmber 31, 2017, wre as follws Cost Fair Value Unrealized Gain (Loss) $96,000 $83,000 $59,000$63,500 $(13,000) 4,500 Tradng securties Available-for-sale secunities At December 31, 2016, the Fair vakue Adjustment-Trading sccount had a debit balance of $2,800, and the Fair Wsue Adjustmerm- Awalable-for-Sae acmant had a rear bsance of 7803 entry" for the account tities and enter 0 for the amounts) No. Account Titles and Explanation entry is reg Debit Credit 2. oe? ? wl @ e here to search

Explanation / Answer

1. Trading securities:

Unrealized losses a/C Dr. 13000$

To fair value adjustment a/C. 13000$

Income statement a/C Dr. 13000$

Unrealized losses a/C 13000$

Fair value adjustment a/C Dr. 13000$

To trading securities a/C. 13000$

2. For Available for sale securities :

Fair value adjustment a/C Dr. 4500$

To unrealized gain a/C. 4500$

Unrealized gain is transferred to OCI (other comprehensive income statement)

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