On July 1, 2018, Wolfpack Corporation purchased securities which it intends to buy and sell frequently. These securities consisted of (a) Todd Corporation 10%, 5-year bonds with a face value of $20,000 which were purchased for $18,500 and (b) 300 shares of Cornett Company common stock which were purchased at $40 per share. Assume that on December 31, 2018, the investment in Todd Corporation bonds has a market value of $22,300, and the investment in Cornett Company stock has a market value of $10,500. 

Required: 

Prepare the year-end journal entry to record the unrealized gain or loss. Refer to the Chart of Accounts for the exact wording of the answer choices for text entries.

Prepare the journal entry to record the unrealized gain or loss on December 31, 2018. Refer to the Chart of Accounts for the exact wording of the answer choices for text entries.

Answer rating: 100% (QA)

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