Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta

تمرين 46

Brooks Co. purchases various investments in trading securities at a cost of $66,000 on December 27, 2015. (This is its first and only purchase of such securities.) At December 31, 2015, these securities had a fair value of $72,000.
1. Prepare the December 31, 2015, year-end adjusting entry for the trading securities' portfolio.
2. Explain how each account in the entry of part 1 is reported in financial statements.
3. Prepare the January 3, 2016, entry when Brooks sells a portion of its trading securities (that had originally cost $33,000) for $35,000.