InstructionsInstructionsOn January 1, Valuation Allowance for Trading Investments had a zero balance. On December 31, the cost of the trading securities portfoliowas $380,400, and the fair value was $346,500.1Prepare the December 31 adjusting journal entry to record the unrealized gain or loss on trading investments. Refer to the Chart ofAccounts for exact wording of account titles.Journal23DATEDec. 31Chart of AccountsFeedback✓JournalCheck My WorkDESCRIPTIONAdjusting EntriesValuation Allowance for Trading InvestmentsUnrealized Gain (Loss) on Available-for-Sale InvestmentsPOST. REF.DEBIT33,900.00CREDIT33,900.00✓ASSEThe unrealized gain or loss is the difference between the portfolio cost and its fair value. The offsetting account is Valuation Allowance

On January 1, Valuation Allowance for Trading Investments had a zero balance. On December 31, the cost of the trading securities portfolia was $380,400, and the fair value was $346,500. Prepare the December 31 adjusting journal entry to record the unrealized gain or loss on trading investments. Refer to the Chart of Accounts for exact wording of account titles. Journal 1 2 3 DATE Dec. 31 DESCRIPTION Adjusting Entries Valuation Allowance for Trading Investments Unrealized Gain (Loss) on Available-for-Sale Investments POST. REF. DEBIT 33,900.00 CREDIT 33,900.00

On January 1, Valuation Allowance for Trading Investments had a zero balance. On December 31, the cost of the trading securities portfolia was $380,400, and the fair value was $346,500. Prepare the December 31 adjusting journal entry to record the unrealized gain or loss on trading investments. Refer to the Chart of Accounts for exact wording of account titles. Journal 1 2 3 DATE Dec. 31 DESCRIPTION Adjusting Entries Valuation Allowance for Trading Investments Unrealized Gain (Loss) on Available-for-Sale Investments POST. REF. DEBIT 33,900.00 CREDIT 33,900.00

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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