Question 1(Mandatory)(2.5 points)

Stocks categorized as trading securities are purchased for $55,000 during Year 1. The company only closes its books once a year, on 12/31. On December 31^stof Year 1 the market value of the stock is$67,000.

_______________________________________________________________

Please provide theadjusting entryrelating to these trading securities on 12/31:

Question 1 options:

Dr. Valuation Allowance for Trading Securities $67,000

Cr. Unrealized Gain on Trading Investments $67,000

Dr. Valuation Allowance for Trading Securities $12,000

Cr. Unrealized Gain on Trading Investments $12,000

Dr. Unrealized Gain on Trading Securities $12,000

Cr. Valuation Allowance for Trading Investments $12,000

Dr. Unrealized Gain on Trading Securities $67,000

Cr. Valuation Allowance for Trading Investments $67,000

Question 2(Mandatory)(2.5 points)

Stocks categorized as trading securities are purchased for $55,000 during Year 1. The company only closes its books once a year, on 12/31. On December 31^stof Year 1 the market value of the stock is$67,000.

_______________________________________________________________

On the company's 12/31 Balance Sheet, "Trading investments (at cost)" will be reported as what value?

Question 2 options:

$43,000

$67,000

$12,000

$55,000

Question 3(Mandatory)(2.5 points)

Stocks categorized as trading securities are purchased for $55,000 during Year 1. The company only closes its books once a year, on 12/31. On December 31^stof Year 1 the market value of the stock is$67,000.

_______________________________________________________________

Which of the following is true about the account "Valuation allowance for trading securities?"

Question 3 options:

There is no "Valuation allowance for trading securities" on the Balance Sheet because the "Valuation allowance for trading securities" belongs on the Income Statement.

The December 31st " Valuation allowance for trading securities" credit balance of $12,000 is subtracted from the account "Trading securities (at cost)" on the December 31st Balance Sheet.

The December 31st " Valuation allowance for trading securities" debit balance of $67,000 is added to the account "Trading securities (at cost)" on the December 31st Balance Sheet.

The December 31st " Valuation allowance for trading securities" debit balance of $12,000 is added to the account "Trading securities (at cost)" on the December 31st Balance Sheet.

Question 4(Mandatory)(2.5 points)

Stocks categorized as trading securities are purchased for $55,000 during Year 1. The company only closes its books once a year, on 12/31. On December 31^stof Year 1 the market value of the stock is$67,000.

_______________________________________________________________

On the company's 12/31 Balance Sheet, "Trading investments (at fair value)" will be reported as what value?

Question 4 options:

$55,000

$12,000

$43,000

$67,000

Question 5(Mandatory)(2.5 points)

Stocks categorized as trading securities are purchased for $55,000 during Year 1. The company only closes its books once a year, on 12/31. On December 31^stof Year 1 the market value of the stock is$67,000.

_______________________________________________________________

On the company's 12/31 Balance Sheet, which value is consideredBook Valueof the trading securities?

Question 5 options:

$12,000

$55,000

$43,000

$67,000

Question 6(Mandatory)(2.5 points)

Stocks categorized as trading securities are purchased for $55,000 during Year 1. The company only closes its books once a year, on 12/31. On December 31^stof Year 1 the market value of the stock is$67,000.

_______________________________________________________________

What is theIncome Statementimpact of these trading securities in the December 31st Year 1 Income Statement?

Question 6 options:

The unrealized loss of $12,000 is recognized on the Income Statement, decreasing current period income by $12,000.

There is no impact of these trading securities on the company's Year 1 December 31st Income Statement,

The unrealized gain of $67,000 is recognized on the Income Statement, increasing current period income by $67,000.

The unrealized gain of $12,000 is recognized on the Income Statement, increasing current period income by $12,000.

Question 7(Mandatory)(2.5 points)

Stocks categorized as trading securities are purchased for $55,000 during Year 1. The company only closes its books once a year, on 12/31. On December 31^stof Year 1 the market value of the stock is$44,000.

_______________________________________________________________

Please provide theadjusting entryrelating to these trading securities on 12/31:

Question 7 options:

Dr. Unrealized Loss on Trading Investments $44,000

Cr. Valuation Allowance for Trading Securities $44,000

Dr. Unrealized Loss on Trading Securities $12,000

Cr. Valuation Allowance for Trading Investments $12,000

Dr. Unrealized Gain on Trading Securities $11,000

Cr. Valuation Allowance for Trading Investments $11,000

Dr. Unrealized Loss on Trading Investments $11,000

Cr. Valuation Allowance for Trading Securities $11,000

Question 8(Mandatory)(2.5 points)

Stocks categorized as trading securities are purchased for $55,000 during Year 1. The company only closes its books once a year, on 12/31. On December 31^stof Year 1 the market value of the stock is$44,000.

_______________________________________________________________

On the company's 12/31 Balance Sheet, "Trading investments (at cost)" will be reported as what value?

Question 8 options:

$11,000

$44,000

$55,000

$43,000