Help Save & Exit Su pter 15-HOMEWORK-x36,810-12,14 16817 Check my w Exercise 15-
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Question
Help Save & Exit Su pter 15-HOMEWORK-x36,810-12,14 16817 Check my w Exercise 15-3 Accounting for trading securities LO P Brooks Co. purchases various investments in trading securities at a cost of $51,000 on December 27, 2017 (This is its first and only purchase of such securities.) At December 31, 2017, these securities had a fair value of $58,000 1. & 3. Prepare the December 31, 2017, year end adjusting entry for the trading securities' portfolio and the January 3, 2018, entry when Brooks sells a portion of its trading securities (that had originally cost $25,500) for $27,250. (If no entry is required for a trensaction/event, select "No journal entry required" in the first account field.) Book View transaction list Journal entry worksheet Record the fair vale adjustment for the securities at December 31, 2017. Note: Enter debits before credits. Date General Journal Debit | Credit Dec 31, 2017 10, 11 ill Next > up
Explanation / Answer
Journal entry :
Date accounts & explanation debit credit Dec 31 Trading securities 7000 Unrealized holding gain on trading securties 7000 (To record fair value adjustment) 2018 Jan 3 Cash 27250 Loss on sale of trading securities 1750 Trading securities (58000/51000*25500) 29000Related Questions
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