Kitty Company began operations in the current year and acquired short-term debt investments in trading securities....

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Kitty Company began operations in the current year and acquired short-term debt investments in trading securities. The year-e

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Answer 1

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Journal Entries - Kitty Company
Date	Particulars	Debit	Credit
31-Dec	Unrealized holding gain or loss - NI Dr	$3.00
	To Fair value adjustment		$3.00
	(To record fair value adjustment for trading securities)

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Answer 2

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