Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Brooks Company purchases debt investments as trading securities at a cost of $74,000 on December 27. This is its first and only purchase of such securities. At December 31, these securities had a fair value of $81,000. Exercise 15-2 (Algo) Accounting for debt investments classified as trading LO P1 1. Prepare the December 27 entry for the purchase of debt investments. 2. & 3. Prepare the December 31 year-end fair value adjusting entry for the trading securities' portfolio and the January 3 entry when Brooks sells a portion of its trading securities (costing $37,000) for $38,750 cash. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Prepare the December 27 entry for the purchase of debt investments. View transaction list Journal entry worksheet < 1 Record purchase of trading securities. Note: Enter debits before credits. Date December 27 Record entry General Journal Clear entry < Req 1 Debit Credit View general journal Req 2 and 3 >

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Required information
Use the following information for the Exercises below. (Algo)
[The following information applies to the questions displayed below.]
Brooks Company purchases debt investments as trading securities at a cost of $74,000 on December
27. This is its first and only purchase of such securities. At December 31, these securities had a fair
value of $81,000.
Exercise 15-2 (Algo) Accounting for debt investments classified as trading LO P1
1. Prepare the December 27 entry for the purchase of debt investments.
2. & 3. Prepare the December 31 year-end fair value adjusting entry for the trading securities' portfolio and the
January 3 entry when Brooks sells a portion of its trading securities (costing $37,000) for $38,750 cash.
Complete this question by entering your answers in the tabs below.
Req 1
Prepare the December 27 entry for the purchase of debt investments.
View transaction list
Req 2 and 3
Journal entry worksheet
<
1
Record purchase of trading securities.
Note: Enter debits before credits.
Date
December
27
Record entry
General Journal
Clear entry
< Req 1
Debit
Credit
View general journal
Req 2 and 3 >
Transcribed Image Text:Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Brooks Company purchases debt investments as trading securities at a cost of $74,000 on December 27. This is its first and only purchase of such securities. At December 31, these securities had a fair value of $81,000. Exercise 15-2 (Algo) Accounting for debt investments classified as trading LO P1 1. Prepare the December 27 entry for the purchase of debt investments. 2. & 3. Prepare the December 31 year-end fair value adjusting entry for the trading securities' portfolio and the January 3 entry when Brooks sells a portion of its trading securities (costing $37,000) for $38,750 cash. Complete this question by entering your answers in the tabs below. Req 1 Prepare the December 27 entry for the purchase of debt investments. View transaction list Req 2 and 3 Journal entry worksheet < 1 Record purchase of trading securities. Note: Enter debits before credits. Date December 27 Record entry General Journal Clear entry < Req 1 Debit Credit View general journal Req 2 and 3 >
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