The entry to record a sale of trading securities for $65,000 on January 3, 2018, that were purchased for $52,000 on November 21, 2017, and had a fair value on December 31, 2017, of $57,000 would include a

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The sale of trading securities for $65,000, which were purchased for $52,000 and had a fair value of $57,000 on December 31, 2017, results in a gain on sale of $13,000 ($65,000 - $52,000). Therefore, the entry would include a debit to Cash for $65,000, a credit to Trading Securities for $52,000, and a credit to Gain on Sale of Trading Securities for $13,000. There is no need to adjust the Unrealized Holding Gain/Loss-Trading Securities account since these securities were sold, and any unrealized gain or loss was already reflected on the December 31, 2017, balance sheet.

The Entry to Record a Sale of Trading Securities for $65,000