Required information [The following information applies to the questions displayed below.] Brooks Company purchases debt investments as trading securities at a cost of $66,000 on December 27. This is its first and only purchase of such securities. At December 31, these securities had a fair value of $72,000. 1. Prepare the December 27 entry for the purchase of debt investments. 2. & 3. Prepare the December 31 year-end fair value adjusting entry for the trading securities' portfolio and the January 3 entry when Brooks sells a portion of its trading securities (costing $3,000) for $4,000 cash. Reg 1 Req 2 and 3 Prepare the December 31 year-end fair value adjusting entry for the trading securities' portfolio and the January 3 entry when Brooks sells a portion of its trading securities (costing $3,000) for $4,000 cash. General Journal No 1 2 Date December 31 January 03 Fair value adjustment-Trading Unrealized gain-Income Cash Debt investments-Trading Gain on sale of debt investments · O 000 Debit 17.000 4,000 Credit 17,000 3.273
Required information [The following information applies to the questions displayed below.] Brooks Company purchases debt investments as trading securities at a cost of $66,000 on December 27. This is its first and only purchase of such securities. At December 31, these securities had a fair value of $72,000. 1. Prepare the December 27 entry for the purchase of debt investments. 2. & 3. Prepare the December 31 year-end fair value adjusting entry for the trading securities' portfolio and the January 3 entry when Brooks sells a portion of its trading securities (costing $3,000) for $4,000 cash. Reg 1 Req 2 and 3 Prepare the December 31 year-end fair value adjusting entry for the trading securities' portfolio and the January 3 entry when Brooks sells a portion of its trading securities (costing $3,000) for $4,000 cash. General Journal No 1 2 Date December 31 January 03 Fair value adjustment-Trading Unrealized gain-Income Cash Debt investments-Trading Gain on sale of debt investments · O 000 Debit 17.000 4,000 Credit 17,000 3.273
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please dont give image based and handwritten answers thanku
![Required information
[The following information applies to the questions displayed below.]
Brooks Company purchases debt investments as trading securities at a cost of $66,000 on December 27. This is its first
and only purchase of such securities. At December 31, these securities had a fair value of $72,000.
1. Prepare the December 27 entry for the purchase of debt investments.
2. & 3. Prepare the December 31 year-end fair value adjusting entry for the trading securities' portfolio and the January 3 entry when
Brooks sells a portion of its trading securities (costing $3,000) for $4,000 cash.
Req 1
Prepare the December 31 year-end fair value adjusting entry for the trading securities' portfolio and the January 3 entry when
Brooks sells a portion of its trading securities (costing $3,000) for $4,000 cash.
General Journal
No
1
Req 2 and 31
2
Date
December 31
January 03
Fair value adjustment- Trading
Unrealized gain-Income
Cash
Debt investments-Trading
Gain on sale of debt investments
››
000
Debit
17,000
4,000
Credit
17,000
3.273](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff6604b4c-b16c-4eeb-92aa-ae91b0491ae7%2F06bfeab3-4c60-44f8-b194-21fd51008aaa%2F3ehh1ws_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Brooks Company purchases debt investments as trading securities at a cost of $66,000 on December 27. This is its first
and only purchase of such securities. At December 31, these securities had a fair value of $72,000.
1. Prepare the December 27 entry for the purchase of debt investments.
2. & 3. Prepare the December 31 year-end fair value adjusting entry for the trading securities' portfolio and the January 3 entry when
Brooks sells a portion of its trading securities (costing $3,000) for $4,000 cash.
Req 1
Prepare the December 31 year-end fair value adjusting entry for the trading securities' portfolio and the January 3 entry when
Brooks sells a portion of its trading securities (costing $3,000) for $4,000 cash.
General Journal
No
1
Req 2 and 31
2
Date
December 31
January 03
Fair value adjustment- Trading
Unrealized gain-Income
Cash
Debt investments-Trading
Gain on sale of debt investments
››
000
Debit
17,000
4,000
Credit
17,000
3.273
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