Required information [The following information applies to the questions displayed below.] Brooks Company purchases debt investments as trading securities at a cost of $55,000 on December 27 . This is its first and only purchase of such securities. At December 31 , these securities had a fair value of $65,000. 1. Prepare the December 27 entry for the purchase of debt investments. 2. \& 3. Prepare the December 31 year-end fair value adjusting entry for the trading securities' portfolio and the January 3 entry when Brooks sells a portion of its trading securities (costing $27,500 ) for $30,000 cash. Prepare the December 27 entry for the purchase of debt investments. Journal entry worksheet Note: Enter debits before credits. Prepare the December 31 year-end fair value adjusting entry for the trading securities' portfolio and the January 3 entry when Brooks sells a portion of its trading securities (costing $27,500 ) for $30,000 cash. Journal entry worksheet