Required information [The following information applies to the questions displayed below.] Brooks Company purchases debt investments as trading securities at a cost of $71,000 on December 27. This is its first and only purchase of such securities. At December 31 , these securities had a fair value of $89,000. 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 $35,500 ) for $40,000 cash. Complete this question by entering your answers in the tabs below. Prepare the December 27 entry for the purchase of debt investments. Journal entry worksheet Record purchase of trading securities. Note: Enter debits before credits. Required information Brooks Compary purchases debt investmeots as trading securties at a cost of $7t000 on December 27 . This is its hirt and only purchose of such securities. At Decernber 31, these securities had o fair value of $89000. 1. Prepare the December 27 entry for the purchase of debt investments. 2. \& 3. Prepare the December 31 year-end falr volue odjusting entry for the trading securities' portfolio and the January 3 entry when Brooks selis a portion of its tracting securities (costing $35,500) for $40,000 cash. Complete this question by entering your answers in the tabs below. 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 $35,500 ) for $40,000 cash. Show less A Journal entry worksheet Record the year-end adjustment to fair value, if any. Note: Enter debits before credits. Note: Enter debits before credits. Required information The following information applies to the questions displayed below] Brooks Company purchases debt investments as trading securities at a cost of $71,000 on December 27. This is its first and only purchase of such securities. At December 31, these securities had a fair value of $89,000. 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' portfollo and the January 3 entry when Brooles sells a portion of its trading securities (costing $35,500 ) for $40,000 cash. Complete this question by entering your answers in the tabs below. Prepare the December 31 year-end fair value adjusting entry for the trading securities' portfollo and the January 3 entry when Brooks sells a portion of its trading securities (costing $35,500 ) for $40,000 cash. Show less A
