Fair Value Journal Entries, Trading Investments

The investments of Charger Inc. include a single investment: 24,000 shares of Raiders, Inc. common stock purchased on February 24, Year 1, for $25 per share including brokerage commission. These shares were classified as trading securities. As of the December 31, Year 1, balance sheet date, the share price increased to $33 per share.

a. Journalize the entries to acquire the investment on February 24, and record the adjustment to fair value on December 31, Year 1.

Year 1 Feb. 24
Year 1 Dec. 31

b. How is the unrealized gain or loss for trading investments reported on the financial statements?

The unrealized gain or unrealized loss for trading investments is disclosed in the as .