Some of Tollakson Corporation's investments in debt securities are classified as trading securities and some are classified

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Some of Tollakson Corporation's investments in debt securities are classified as trading securities and some are classified as available-for-sale. The cost and fair value of each category at December 31, 2022, were as follows.

At December 31, 2021, the Fair Value Adjustment-Trading account had a debit balance of $3,200, and the Fair Value Adjustment-Available-for-Sale account had a credit balance of $5,750.

Prepare the required journal entries for each group of securities for December 31, 2022.

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Accounting Principles

ISBN: 9781119707110

14th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Jill E. Mitchell

Question Posted: Jul 01, 2022 01:12 AM

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Some of Tollakson Corporation's investments in debt securities are classified as trading securities and some are classified

Question:

Trading securities Available-for-sale securities Cost $96,300 $59,000 Fair Value $84,900 $63,200 Unrealized Gain (Loss) $(11,400) $4,200

Step by Step Answer:

Journal entries for trading securities Debit Fair Value AdjustmentTrading 11400 Credit Trading Secur...View the full answer

Accounting Principles

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