Global Commerce Corporation purchased trading debt investments for $222,000 on December 31, 2024. There is a decrease of $5,600 in the fair value of the trading debt investments by the end of the year 2025. Which of the following is the correct journal entry on December 31, 2025? O Fair Value Adjustment-Trading 5,600 Unrealized Holding Loss--Trading O Trading Debt Investments Unrealized Holding Loss--Trading O Unrealized Holding Loss-Trading Retained Earnings O Unrealized Holding Loss-Trading Fair Value Adjustment-Trading 5,600 5,600 5,600 5,600 5,600 5,600 5,600

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Global Commerce Corporation purchased trading debt investments for $222,000 on December 31, 2024. There is a decrease of $5,600 in the fair value of the
trading debt investments by the end of the year 2025. Which of the following is the correct journal entry on December 31, 2025?
Fair Value Adjustment-Trading
5,600
Unrealized Holding Loss--Trading
Trading Debt Investments
Unrealized Holding Loss--Trading
Unrealized Holding Loss-Trading
Retained Earnings
Unrealized Holding Loss-Trading
Fair Value Adjustment—Trading
5,600
5,600
5,600
5,600
5,600
5,600
5,600
Transcribed Image Text:Global Commerce Corporation purchased trading debt investments for $222,000 on December 31, 2024. There is a decrease of $5,600 in the fair value of the trading debt investments by the end of the year 2025. Which of the following is the correct journal entry on December 31, 2025? Fair Value Adjustment-Trading 5,600 Unrealized Holding Loss--Trading Trading Debt Investments Unrealized Holding Loss--Trading Unrealized Holding Loss-Trading Retained Earnings Unrealized Holding Loss-Trading Fair Value Adjustment—Trading 5,600 5,600 5,600 5,600 5,600 5,600 5,600
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