Borchert Co. purchases various investments in trading securities at a cost of $7

Question

Borchert Co. purchases various investments in trading securities at a cost of $76,000 on December 27, 2009. (This is its first and only purchase of such securities.) At December 31, 2009, these securities had a market value of $85,000.





Requirement 1:



Prepare the December 31, 2009, year-end adjusting entry for the trading securities' portfolio. (Omit the "$" sign in your response.)








Date

General Journal

Debit

Credit



Dec. 31, 2009

(Click to select)Short-Term Investments-TradingUnrealized Loss-IncomeInvestmentUnrealized Gain-IncomeMarket Adjustment-Trading









(Click to select)Market Adjustment-TradingUnrealized Gain-EquityGain on Sale of Short-Term InvestmentsIncome from SecuritiesUnrealized Gain-Income








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Requirement 2:



Prepare the January 3, 2010, entry when Borchert sells a portion of its trading securities (that had originally cost $38,000) for $40,250. (Omit the "$" sign in your response.)








Date

General Journal

Debit

Credit



Jan. 3, 2010

(Click to select)Loss on Sale of Short-Term InvestmentsSecuritiesShort-Term Investments-TradingCashGain on Sale of Short-Term Investments









(Click to select)Short-Term Investments-TradingUnrealized GainProfitGain on Sale of Short-Term InvestmentsCash









(Click to select)Short-Term Investments-TradingGain on Sale of Short-Term InvestmentsProfitUnrealized GainCash

Explanation / Answer

Requirement 1 Date 3 jan 2009 General Journal security issue Debit 2300 Credit 3600 Requirement 2 : Date April 6 ,2010 General Journal Investement security Debit 4300 Credit 7600

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