CH$15$ #$1$

$1$

$!$

Required information

Skipped

$[$The following information applies to the questions displayed below.$]$

Brooks Company purchases debt investments as trading securities at a cost of $$67,000$ on December $27.$ This is its first and only purchase of such securities$.$ At December $31,$ these securities had a fair value of $$72,000.$

Prepare the December $27$ entry for the purchase of debt investments.

& $3.$ Prepare the December $31$ year$-$end fair value adjusting entry for the trading securities$\text{'}$ portfolio and the January $3$ entry when Brooks sells a portion of its trading securities $($costing $$33,500)$ for $$34,750$ cash.

Complete this question by entering your answers in the tabs below.

Req $1$

Req $2$ and $3$

Prepare the December $27$ entry for the purchase of debt investments.

View transaction list

Journal entry worksheet

$1$

Record purchase of trading securities$.$

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$December $27,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$

Record entry

Clear entry

View general journal