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Valuing Trading Securities at Fair Value On January 1, Valuation Allowance for Trading Investments had a...

Valuing Trading Securities at Fair Value

On January 1, Valuation Allowance for Trading Investments had a zero balance. On December 31, the cost of the trading securities portfolio was $68,600, and the fair value was $69,200.

Prepare the December 31 adjusting journal entry to record the unrealized gain or loss on trading investments.

Dec. 31 fill in the blank 2
fill in the blank 4
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Answer #1
Valuation Allowance for Trading Investments DR CR
2014 Dec 31 Unrealised Gain on Trading Investment A/c Dr 600
              To record increase in fair value of Trading investment 600

* TRADING INVESTMENT AT FAIR VALUE,DECEMBER 31 $69200

(-) TRADING INVESTMENT AT COST, DECEMBER 31 $68600

UNREALISED GAIN ON TRADING INVESTMENT $ 600

PLEASE LIKE TH ANSWER IF YOU FIND IT HELPFUL OR YOU CAN COMMENT IF YOU NEED ANY CLARITY / EXPLAINATION ON ANY POINT.

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