Some of Tollakson Corporation’s investment 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, 2017, were as follows.

At December 31, 2016, 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, 2017.

Transcribed Image Text:

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