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Cross Clothiers Invested $200,000 in a Debt Security That It

Question 57

Essay

Cross Clothiers invested $200,000 in a debt security that it properly classified as a trading security on 12/20/20. At 12/31/20, this trading security had a fair value of $201,500. Record the journal entries needed for this investment assuming this is the first and only trading debt security for Cross Clothiers.

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