Information related to Jones Company’s portfolio of trading securities for December 31, 2008 follows:

Jones reported a $10,000 credit balance in its Market adjustment—Trading securities account in its December 31, 2007 (prior year) balance sheet. Assume that it sold no trading securities during 2007 or 2008.

Required:
1. How much should Jones report as unrealized gain or loss on its 2008 income statement?
2. Give the journal entry that Jones would make to record the mark-to-market adjustment to its trading portfolio.

Transcribed Image Text:

Aggregate cost of securities Gross unrealized gains Gross unrealized losses $340,000 8,000 52,000