On July 1, 2019, Wolfpack Corporation purchased securities which it intends to buy and sell frequently. These securities consisted of Todd Corporation 10%, 5-year bonds with a face value of $21,000 which were purchased for $19,500. Required: Prepare the July 1 journal entry to record the purchase of these trading securities.

CHART OF ACCOUNTS

Wolfpack Corporation

General Ledger

	ASSETS
111	Cash
113	Investment in Trading Securities
121	Accounts Receivable
141	Inventory
152	Prepaid Insurance
181	Equipment
189	Accumulated Depreciation
191	Investment in Held-to-Maturity Debt Securities

	LIABILITIES
211	Accounts Payable
231	Salaries Payable
250	Unearned Revenue
261	Income Taxes Payable

	EQUITY
311	Common Stock
331	Retained Earnings

	REVENUE
411	Sales Revenue
431	Interest Income

	EXPENSES
500	Cost of Goods Sold
511	Insurance Expense
512	Utilities Expense
521	Salaries Expense
532	Bad Debt Expense
540	Interest Expense
541	Depreciation Expense
559	Miscellaneous Expenses
910	Income Tax Expense

Prepare the July 1 journal entry to record the purchase of these trading securities.

General Journal Instructions

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PAGE 1

GENERAL JOURNAL

Score: 19/25

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1	Jul 1	Cash
2		Investments in Trading Securities