Question

 Rogal Corporation held available-for-sale securities in its portfolio on January 2, 2002, that had been purchased for $1,470.72 on January 2, 2001. On December 31, 2001, the - company had recorded an unrealized gain of $78.56. On January 31, 2002, the securities were sold.

 Required:

 a. Prepare the entry to record the sale assuming the securities were sold for $1,560.58. 

 b. Prepare the entry to record the sale assuming the securities were sold for $1,538.20.

 c. Prepare the entry to record the sale assuming the securities were sold for $1,420.00.

Answer 1

Transaction	General Journal	Debit ($)	Credit ($)
a	Bank Account	1,560.58
	Profit on available for Sale securities (recorded in Other Comprehensive Income)	78.56
	To Securities-Available for Sale A/c		1,549.28
	To Realised Profit on available for Sale of Securities A/c		89.86
	(Being Securities sold)
b	Bank Account	1,538.20
	Profit on available for Sale securities (recorded in Other Comprehensive Income)	78.56
	To Securities-Available for Sale A/c		1,549.28
	To Realised Profit on available for Sale of Securities A/c		67.98
	(Being Securities sold)
c	Bank Account	1,420.00
	Realised Loss on available for Sale of Securities A/c	50.72
	Profit on available for Sale securities (recorded in Other Comprehensive Income)	78.56
	To Securities-Available for Sale A/c		1,549.28
	(Being Securities sold)