QS $15-3($Algo$)$ Accounting for debt investments classified as trading LO P$1$

Prepare Hertog Company's journal entries to record the following transactions for the current year.

May $7$ Purchases Kraft bonds as a short$-$term investment in trading securities at a cost of $$10,720.$ June $6$ Sells its entire investment in Kraft bonds for $$11,350$ cash.

Journal entry worksheet

$1$

$2$

Purchases Kraft bonds as a short$-$term investment in trading securities at a cost of $$10,720.$

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal &$,$Debit,Credit$],[$May $07,$Debt investments $-$ Trading,$\sqrt[\phantom{2}]{1},10,720,],[,$Cash,,,$10,720],[,,,,],[,,,,],[,,,,],[,,,,]]$