QS C$-7($Algo$)$ Accounting for available$-$for$-$sale debt securities LO P$3$

Journ Company purchased short$-$term investments in available$-$for$-$sale debt securities at a cost of $$51,000$ cash on November $25.$ At December $31,$ these securities had a fair value of $$49,000.$ This is the first and only time the company has purchased such securities$.$

& $3.$ Prepare the November $25$ entry to record the purchase of debt securities$,$ the December $31$ year$-$end adjusting entry for the securities$\text{'}$ portfolio, and the April $6$ entry when Journ sells $8\%$ of these securities $($ $$4,080$ cost$)$ for $$6,000$ cash.

Journal entry worksheet

$1$

$2$

$3$

Record purchase of available$-$for$-$sale securities$.$

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$November $25,$A$,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$