Transcribed image text : Investment in Trading and AFS Securities In 2019, a company purchases debt securities at a par value of $1,150,000. Their year-end value is $1,196,000. In 2020, these securities are sold for $1,207,500 and new securities are purchased for $1,610,000. At the end of 2020, the securities have not yet been sold, and have a value of $1,380,000. Required Prepare the journal entries to record the above information for 2019 and 2020, assuming that: a. The securities are categorized as trading securities. General Journal Description Debit Credit 2019 Date 0 0 0 0 To record purchase of trading securities. 0 0 0 0 To record change in value for trading securities at year-end. 2020 Cash 0 0 0 0 0 0 Investment in trading securities To record sale of trading securities. 0 0 0 0 To record purchase of new trading securities. 0 0 0 0 To record change in value for trading securities at year-end. b. The securities are categorized as AFS securities, and (1) the company intends to sell the securities held at the end of 2020 before the loss is recovered, or (2) the company intends to hold the securities, and their decline in value is attributed to 0 0 0 0 To record purchase of AFS securities. 0 0 0 0 To record change in value for AFS securities at year-end