Exercise 15-2 Accounting for debt investments classified as trading LO P1 Brooks Co. purchases debt investments as trading securities at a cost of $64,000 on December 27. This is its first and only purchase of such securities. At December 31, these securities had a fair value of $71,000. 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 $32,000) for $33,750 cash. Prepare the December 27 entry for the purchase of debt investments, View transaction list Journal entry worksheet Record purchase of trading securities. Note: Enter debits before credits. General Journal Debit Credit Date Dec. 27 Record entry Clear entry View general journal Record the year-end adjustment to fair value, if any. Note: Enter debits before credits. General Journal Debit Credit Date Dec. 31 Record sale of trading securities. Note: Enter debits before credits. General Journal Debit Credit Date Jan. 3