Required information [The following information applies to the questions displayed below.] Brooks Company purchases debt investments as trading securities at a cost of $66,000 on December 27. This is its first and only purchase of such securities. At December 31, these securities had a fair value of $72,000. 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 $3,000) for $4,000 cash. Req 1 Req 2 and 3 Prepare the December 27 entry for the purchase of debt investments. View transaction list Journal entry worksheet 1 Record purchase of trading securities. Note: Enter debits before credits. Date December General Journal Debit Credit Stock investments 66,000 27 Cash 66,000 Fair value adjustment-Trading Unrealized gain-Income 6.000 6,000 Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 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 $3,000) for $4,000 cash. View transaction list Journal entry worksheet 2 Record the year-end adjustment to fair value, if any. Note: Enter debits before credits. Date December 31 General Journal Debit Credit Record entry Clear entry View general journal