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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
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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.

User Cliff Hall
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Answer:

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).

Step-by-step explanation:

User Rainy Sidewalks
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