On June 1, 2018, Mango Corp. purchased Papaya Corp. common shares for $12,100 as a trading investment. Three months later, Mango sold these shares for $13,000. The entry to record the sale would include a
A) debit to Cash of $12,100.
B) credit to Interest Revenue of $900.
C) credit to Held for Trading Investments of $13,000.
D) credit to Realized Gain on Held for Trading Investments of $900.

Question

Quizplus · Accepted Answer

The sale of the shares resulted in a gain of $900 ($13,000 - $12,100), which should be recorded as a credit to Realized Gain on Held for Trading Investments.