Exercise 15-2 Accounting for debt investments classified as trading LO P1 Brooks Co. purchases debt investments as trading securities at a cost of $76,000 on December 27. This is its first and only purchase of such securities. At December 31, these securities had a fair value of $86,000. 1. Prepare the December 27 entry for the purchase of debt investments. 2. & 3. Prepare the December 31 year-end fair value adjusting entry for the trading securities' portfolio and the January 3 entry when Brooks sells a portion of its trading securities (costing $38,000) for $40,500 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. Date General Journal Debit Credit Dec. 27 Record entry Clear entry View general journal Exercise 15-2 Accounting for debt investments classified as trading LO P1 Brooks Co. purchases debt investments as trading securities at a cost of $76,000 on December 27. This is its first and only purchase of such securities. At December 31, these securities had a fair value of $86,000. 1. Prepare the December 27 entry for the purchase of debt investments. 2. & 3. Prepare the December 31 year-end fair value adjusting entry for the trading securities' portfolio and the January 3 entry when Brooks sells a portion of its trading securities (costing $38,000) for $40,500 cash. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Prepare the December 31 year-end fair value adjusting entry for the trading securities' portfolio and the January 3 entry when Brooks sells a portion of its trading securities (costing $38,000) for $40,500 cash. View transaction list Journal entry worksheet 1 2 > Record the year-end adjustment to fair value, if any. Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31 Record entry Clear entry View general journal Exercise 15-2 Accounting for debt investments classified as trading LO P1 Brooks Co. purchases debt investments as trading securities at a cost of $76,000 on December 27. This is its first and only purchase of such securities. At December 31, these securities had a fair value of $86,000. 1. Prepare the December 27 entry for the purchase of debt investments. 2. & 3. Prepare the December 31 year-end fair value adjusting entry for the trading securities' portfolio and the January 3 entry when Brooks sells a portion of its trading securities (costing $38,000) for $40,500 cash. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 and 3 Prepare the December 31 year-end fair value adjusting entry for the trading securities' portfolio and the January 3 entry when Brooks sells a portion of its trading securities (costing $38,000) for $40,500 cash. View transaction list Journal entry worksheet Record sale of trading securities. Note: Enter debits before credits. Date General Journal Debit Credit Jan. 3 Record entry Clear entry View general journal