Chapter 10, Problem 10.16E

1.

To determine

Trading Debt Investments:

Trading debt investments are the investments in debt securities where the investors wish to sell these investments at a short notice like in a few days, week, or months to generate some profit out of it. They are treated as current assets.

To Journalize: The transaction of BT Publishers’ in L’s stock for the year 2018.

3.

To determine

To identify: The account(s) and amount(s) which BT Publishers would report in its balance sheet for the year ended December 31, 2018.