The investments of Charger Inc. include an investment of trading securities of Raiders Inc. purchased on February 24, 20Y7, for $551,000. The fair value of the securities on December 31, 20Y7, is $609,000.

Required:

a.	Journalize the entries for the February 24 purchase and the adjustment to fair value on December 31, 20Y7. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
b.	How is a unrealized gain or loss for trading investments reported on the financial statements?
c.	If the Raiders Inc. securities had been classified as available-for-sale securities, how would the investment be reported on the financial statements?

PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 Adjusting Entries 4 b. How is a unrealized gain or loss for trading investments reported on the financial statements? (or a separate item if significant). Unrealized losses would The unrealized gain or unrealized loss on trading investments reported on the be in determining net income, while unrealized gains would be in determining net income c. If the Raiders Inc. securities had been classified as available-for-sale securities, how would the investment be reported on the financial statements? The unrealized gain on available-for-sale investments would be reported as The debit balance of Valuation Allowance for Available-for-Sale Investments would be to the balance of the investments account of $551,000 to report the fair value of $609,000 on the