In 2019, a company purchases debt securities at a par value of $650,000. Their year-end value is $676,000. In 2020, these securities are sold for $682,500 and new securit
In 2019, a company purchases debt securities at a par value of $650,000. Their year-end value is $676,000. In 2020, these securities are sold for $682,500 and new securities are purchased for $910,000. At the end of 2020, the securities have not yet been sold, and have a value of $780,000. Required Prepare the journal entries to record the above information for 2019 and 2020, assuming that: a. The securities are categorized as trading securities. General Journal Date Description Debit Credit 2019 Answer Investment in trading securities Answer 650000 Answer 0 Answer Cash Answer 0 Answer 650000 To record purchase of trading securities. Answer Answer 676000 Answer 0 Answer Answer 0 Answer 676000 To record change in value for trading securities at year-end. 2020 Cash Answer 0 Answer 0 Answer Answer 0 Answer 0 Investment in trading securities Answer 0 Answer 0 To record sale of trading securities. Answer Investment in trading securities Answer 910000 Answer 0 Answer Cash Answer 0 Answer 910000 To record purchase of new trading securities. Answer Answer 780000 Answer 0 Answer Answer 0 Answer 780000 To record change in value for trading securities at year-end. b. The securities are categorized as AFS securities, and (1)
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