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Brooks Company purchases debt investments as trading securitles at a cost of $$66,000$ on December $27.$ This is its first

and only purchase of such securites$.$ At December $31,$ these securitles had a falr value of $$72,000.$

Prepare the December $27$ entry for the purchase of debt investments.

$2$ & $3.$ Prepare the December $31$ year$-$end falr value adjusting entry for the trading securitles$\text{'}$ portfolio and the January $3$ entry when

Brooks sells a portion of its trading securitles $($costing $$3,000)$ for $$4,000$ cash.

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Prepare the December $27$ entry for the purchase of debt investments.

Journal entry worksheet

$1$

Record purchase of trading securities$.$

Nate: Enter debits before credits.