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ACT 201 Ch 15. Investments handout 1. Dixon Company purchases debt investments as trading securities at a cost of $54,000 cash on December 27.
ACT 201 Ch 15. Investments handout 1. Dixon Company purchases debt investments as trading securities at a cost of $54,000 cash on December 27. This is its first and only purchase of such securities. At December 31, these securities had a fair value of $68,000. Prepare the December 27 entry for the purchase of debt investments. Also, prepare the December 31 year-end fair value adjusting entry for the trading securities' portfolio and the January 3 entry when Dixon sells a portion of its trading securities (costing $27,000) for $30,500 cash. Date Dec 27 Dec 31 Jan 3 General Journal Debit Credit Dixon sells a portion of its trading securities (costing $27,000) for $30,500 cash. Analyze each transaction above by showing its effects on the accounting equation.. Assets = = Liability + + + + Equity
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