Cross Clothiers invested $200,000 in a debt security that it properly classified as a trading security on 12/20/17. At 12/31/17, this trading security had a fair value of $201,500. Record the journal entries needed for this investment assuming this is the first and only trading debt security for Joss
What will be an ideal response?
Answer:
12/20 Trading Debt Investment - Cost 200,000
Cash 200,000
12/31 Fair Value Adjustment - Trading Debt Inv. 1,500
Unrealized Gain - Net Income 1,500
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