Exercise 15-3 (Algo) Financial statement impact of trading securities LO P1 Brooks sells a portion of its trading securities (costing $28,000) for $29,750 cash. Analyze each transaction above by showing its effects on the accounting equation-specifically, identify the accounts and amounts (including + or -) for each transaction. 1. 1. 2. Brooks Company purchases debt investments as trading securities at a cost of $56,000 on December 27. This is its first and only purchase of such securities. At December 31, these securities had a fair value of $63,000. 3. 3. Debt Investments - Trading Cash Assets (+) increase ✪ (-) decrease • (+) increase • 56,000 = 56,000 = |= - Liabilities Answer is not complete. + + ✦ + + Retained earnings Equity X(+) increase X
Exercise 15-3 (Algo) Financial statement impact of trading securities LO P1 Brooks sells a portion of its trading securities (costing $28,000) for $29,750 cash. Analyze each transaction above by showing its effects on the accounting equation-specifically, identify the accounts and amounts (including + or -) for each transaction. 1. 1. 2. Brooks Company purchases debt investments as trading securities at a cost of $56,000 on December 27. This is its first and only purchase of such securities. At December 31, these securities had a fair value of $63,000. 3. 3. Debt Investments - Trading Cash Assets (+) increase ✪ (-) decrease • (+) increase • 56,000 = 56,000 = |= - Liabilities Answer is not complete. + + ✦ + + Retained earnings Equity X(+) increase X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Brooks Company purchases debt investments as trading securities at a cost of $56,000 on December 27. This is its first
and only purchase of such securities. At December 31, these securities had a fair value of $63,000.
Exercise 15-3 (Algo) Financial statement impact of trading securities LO P1
Brooks sells a portion of its trading securities (costing $28,000) for $29,750 cash. Analyze each transaction above by showing its
effects on the accounting equation-specifically, identify the accounts and amounts (including + or −) for each transaction.
1.
1.
2.
3.
3.
Debt Investments - Trading
Cash
Assets
(+) increase
(-) decrease
(+) increase
56,000
56,000
=
=
=
=
=
X Answer is not complete.
Liabilities
+
+
+
+
+
Retained earnings
Equity
X (+) increase
×
1,750 X
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