Exercise 15-3

Required Information [The following information applies to the questions displayed below.] Brooks Company purchases debt investments as trading securities at a cost of $50,000 on December 27 . This is its first and only purchase of such securities. At December 31, these securities had a fair value of $57,000. Brooks sells o portion of its trading securities (costing $25,000 ) for $26,750 cash. Analyze each transaction above by showing its effects on the accounting equotion-specifically. Identify the accounts and amounts (including + or ) for each transaction. a cost of $50,000 on December 27. This is its first s had a fair value of $57,000. cash. Analyze each transaction above by showing its mounts (including + or ) for each transaction