Answer:
THE TRANSACTION DATE : December 31, 2018.
TRANSACTION: Record the trading securities at fair value.
ASSETS: - 26,400
LIABILITIES:
STAKEHOLDERS' EQUITY: -26,400
REVENUE/GAINS:
EXPENSES/LOSSES: $26,400
NET INCOME: - 26,400
THE TRANSACTION DATE : July 1, 2019.
TRANSACTION: Adjust to fair value.
ASSETS: $29,800
LIABILITIES:
STAKEHOLDERS' EQUITY: $29,800
REVENUE/GAINS: $29,800
EXPENSES/LOSSES:
NET INCOME: $29,800
RECORD THE SALE OF TRADING SECURITIES(ASSETS) = $0.
Explanation:
So, anything dealing with trading securities has to do with trading in which securities are held down for a period of time and then later the securities will be sold.
So, here are the categories for the transactions listed in the question above, assuming the securities are available-for-sale.
THE TRANSACTION DATE : December 31, 2018.
TRANSACTION: Record the trading securities at fair value.
ASSETS: - 26,400
LIABILITIES:
STAKEHOLDERS' EQUITY: -26,400
REVENUE/GAINS:
EXPENSES/LOSSES: $26,400
NET INCOME: - 26,400
THE TRANSACTION DATE : July 1, 2019.
TRANSACTION: Adjust to fair value.
ASSETS: $29,800
LIABILITIES:
STAKEHOLDERS' EQUITY: $29,800
REVENUE/GAINS: $29,800
EXPENSES/LOSSES:
NET INCOME: $29,800
RECORD THE SALE OF TRADING SECURITIES(ASSETS) = $0.
