At the beginning of $2019,$ Able Company had the following portfolio of investments in trading securities $($all of which were acquired at par value$)$:

Security Cost $1/1/2019$ Fair Value

A $$20,000$ $$25,000$

B $30,00029,000$

Totals $$50,000$ $$54,000$

During $2019,$ the following transactions occurred:

May $3$ Purchased C debt securities at their par value for $$50,000.$

July $1$ Sold all of the A securities for $$27,000$ plus interest of $$1,000.$

Dec. $31$ Received interest of $$7,600$ on the B and C securities$.$ Additionally the following information was available:

$12/31/2019$

Security

Fair Value

B $$29,000$

C $52,500$

Required:

$1.$ Prepare journal entries to record the preceding information.

$2.$ Next Level What justification does the FASB give for its treatment of unrealized holding gains and losses for trading securities$?$PAGE $1$

GENERAL JOURNAL

Score: $109/125$

$\backslash$table$[[,$DATE,ACCOUNT TITLE,POST. REF.,DEBIT,CREDIT$],[1,$May $3^{vv},$Investment in Trading Securities,$\frac{?}{\text{b}\text{a}\text{r}}(v),50,{000\mathrm{.}00}^v,],[2,,$Cash,$v,,50,{000\mathrm{.}00}^v$