4. ASF, Inc., holds the following portfolio of securities at December 31, X1. All of the securities were purchased during the year.

Cost Market

Magnum Hunter Resources $14,200 $17,000

SiriusXM 6,800 4,000

Microsoft 11,500 8,200

$32,500 $29,200

Select the entry required at December 31, 20x1 to adjust the portfolio to market (the entry to record the purchase of the investments has already been recorded).

a. Debit Realized Loss $3,300, Credit Investments $3,300

b. Debit Allowance to Adjust to Market $3,300, Credit Unrealized Gain $3,300

c. Debit Unrealized Loss $3,300, Credit Allowance to Adjust to Market $3,300

d. Debit Allowance to Adjust to Market $3,300, Credit Realized Gain $3,300

Select the entry to record the sale of all of the Magnum Hunter stock on July 2, 20x2 for $18,300.

a. Debit Cash $4,100, Credit Investments $4,100

b. Debit Cash $18,300, Credit Investments $14,200, Credit Realized Gain $4,100

c. Debit Cash $18,300, Credit Investments $17,000, Credit Realized Gain $1,300

d. Debit Cash $18,300, Credit Investments $18,300

5. On which financial statement would any unrealized gains or losses from trading securities be shown?

a. Balance Sheet

b. Income Statement

c. Statement of Owners Equity

6. On which financial statement would any unrealized gains or losses from available for sale be shown?

a. Balance Sheet

b. Income Statement

c. Statement of Owners Equity