Exercise 15-3 Accounting for trading securities LO P1 Brooks Co. purchases various investments in trading securities at a cost of $77,000 on December 27, 2017. (This is its first and only purchase of such securities.) At December 31, 2017, these securities had a fair value of $93,000. 1. & 3. Prepare the December 31, 2017, year-end adjusting entry for the trading securities' portfolio and the January 3, 2018, entry when Brooks sells a portion of its trading securities (that had originally cost $38,500) for $42,500. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Date General Journal Credit Debit 16,000 Dec 31, 2017 Fair value adjustment-Trading Unrealized gain-Income 16,000 22 Jan 03, 2018 42,500 Cash Gain on sale of short-term investments Short-term investments-Trading