At the beginning of 2019, Able Company had the following portfolio of investments in trading securities (all
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Question:
At the beginning of 2019, Able Company had the following portfolio of investments in trading securities (all of which were acquired at par value):
| Security | Cost | 1/1/2019 Fair Value |
| A | $20,000 | $25,000 |
| B | 30,000 | 29,000 |
| Totals | $50,000 | $54,000 |
During 2019, the following transactions occurred:
| May 3 | Purchased C debt securities at their par value for $50,000. |
| July 1 | Sold all of the A securities for $27,000 plus interest of $1,000. |
| Dec. 31 | Received interest of $7,600 on the B and C securities. Additionally the following information was available: |
| 12/31/2019 |
Security | Fair Value |
| B | $29,000 |
| C | 52,500 |
Required:
| 1. | Prepare journal entries to record the preceding information. |
Expert Answer:
WN1 Calculation of Unrealized gain loss as on 112019 Cost 20000 30000 Security A Security B 1 Journa... View the full answer
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