Ask Question
30 September, 01:51

On January 1, Valuation Allowance for Trading Investments had a zero balance. On December 31, the cost of the trading securities portfolio was $371,900, and the fair value was $337,800.

Prepare the December 31 adjusting journal entry to record the unrealized gain or loss on trading investments. Refer to the Chart of Accounts for exact wording of account titles.

+4
Answers (1)
  1. 30 September, 02:19
    0
    The adjusting journal entry to record the unrealized loss on trading investments is as follows:

    Unrealized Loss $46,000

    Trading securities portfolio $46,000

    Unrealized loss is the difference between the cost and the fair value ($260,000 - $214,000).
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “On January 1, Valuation Allowance for Trading Investments had a zero balance. On December 31, the cost of the trading securities portfolio ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers