Some of McEleveen Corporations investment securities are classified as trading securities and some are classified as non-trading.

Question:

Some of McEleveen Corporation’s investment securities are classified as trading securities and some are classified as non-trading. The cost and fair value of each category at December 31, 2014, were as follows.

Cost Fair Value Unrealized Gain (Loss)

Trading securities $96,300 $84,900 $(11,400)

Non-trading securities $59,000 $63,200 $ 4,200 At December 31, 2013, the Fair Value Adjustment—Trading account had a debit balance of $2,200, and the Fair Value Adjustment—Non-Trading account had a credit balance of

$7,750. Prepare the required journal entries for each group of securities for December 31, 2014.

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