MA-6 (Static) Determining Financial Statement Effects of Trading Securities Transactions LOA-1

On January 1, 2018, Brian Company purchased at par $800,000, 6 percent bonds issued by Laura Company to be actively traded. At December 31, 2018, the bonds had a fair value of $775,000. The bond investment was sold on July 1, 2019, for $802,000. Brian Companys fiscal year ends on December 31. Using the following categories, indicate the effects of the transactions listed above. (Enter a positive value for an increase, negative value for a decrease, and zero for a net effect of zero.)

		balance	continued.	sheet	Income	continued.	Statement
transaction date	transaction	assets	liabilities	stockholders equity	revenues/gains	expenses/losses	net income
december 31, 2018	record trading securities at fair value		0
july 1, 2019	adjust to fair value	27,000	0	27,000	27,000		27,000
	record the sale of trading securities	0	0