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Investment in Trading and AFS Securities In 2019, a company purchases debt securities at a par value of 1,000,000. Their year-end value is $1,040.000. In

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Investment in Trading and AFS Securities In 2019, a company purchases debt securities at a par value of 1,000,000. Their year-end value is $1,040.000. In 2020, these securities are sold for $1.050,000 and new securities are purchased for $1,400.000. At the end of 2020, the securities have not yet been sold, and have a value of $1,200,000 Required Prepare the journal entries to record the above information for 2019 and 2020, assuming that: a. The securities are categorized as trading securities General journal Description Debi Credit 2019 Invement in trading securities 1000000 . 0 1000000 To record purchase of trading securities Investment in trading securities 4000 Gains on trading curies income To record change in value of trading security and 2020 C 1000000 Gains on securities income = 000 000 To record of trading securit 1450000 1000000 To record phase of trading securities Losses on trading secures income 200000 men in AS 0 1 0 b. The securities are categorized as AFS securities, and (t) the company intends to sell the securities held at the end of 2020 before the loss is recovered or (Z) the company intends to hold the securities an Description 1000000 0 Mark 0.00 out of 1.00 Investment in Trading and AFS Securities In 2019, a company purchases debt securities at a par value of 1,000,000. Their year-end value is $1,040.000. In 2020, these securities are sold for $1.050,000 and new securities are purchased for $1,400.000. At the end of 2020, the securities have not yet been sold, and have a value of $1,200,000 Required Prepare the journal entries to record the above information for 2019 and 2020, assuming that: a. The securities are categorized as trading securities General journal Description Debi Credit 2019 Invement in trading securities 1000000 . 0 1000000 To record purchase of trading securities Investment in trading securities 4000 Gains on trading curies income To record change in value of trading security and 2020 C 1000000 Gains on securities income = 000 000 To record of trading securit 1450000 1000000 To record phase of trading securities Losses on trading secures income 200000 men in AS 0 1 0 b. The securities are categorized as AFS securities, and (t) the company intends to sell the securities held at the end of 2020 before the loss is recovered or (Z) the company intends to hold the securities an Description 1000000 0 Mark 0.00 out of 1.00

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