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Journal entries for trading investments The investments of Charger Inc. include an investment of trading securities of Raiders Inc. purchased on February 2 4 ,
Journal entries for trading investments
The investments of Charger Inc. include an investment of trading securities of Raiders Inc. purchased on February for $ The fair value of the securities on December is $
a Journalize the entries for the February purchase and the adjustment to fair value on December Y If an amount box does not require an entry, leave it blank.
Feb.
Dec.
b How is a unrealized gain or loss for trading investments reported on the financial statements?
The unrealized gain or unrealized loss on trading investments is reported on the or a separate item if significant Unrealized losses would be in determining net income, while unrealized gains would be in determining net income..
c If the Raiders Inc. securities had been classified as availableforsale securities how would the investment be reported on the financial statements?
The unrealized gain on availableforsale investments would be reported as: The debit balance of Valuation Allowance for AvailableforSale Investments would be $ on the to the balance of the investments account of $ to report the fair value of
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