Ans:
Date | Account title and explanation | Debit($) | Credit($) |
Dec 27 | Investments- Trading | $51,000 | |
Cash | $51,000 | ||
(to record purchase of investments) | |||
Dec 31 | Fair value adjustment** | $15,000 | |
Unrealized gain income | $15,000 | ||
(to record fair value of investment) | |||
Jan 3 | Cash | $29,250 | |
Gain on sale of investments | $ 3,750 | ||
Short term investments-trading | $25,500 | ||
( to record sale of portion of investment) |
**= 66,000-51,000
= 15,000
Help Suve & Brooks Co. purchases debt investments as trading securities at a cost of $51,000...
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