Answer:
Dr. Cr.
December 31
*Securities FV adjustment $6,000
Unrealized Gain $6,000
January 3
Cash $4,000
Securities FV adjustment $1,000
Trading Securities $3,000
* Securities FV adjustment is a sub asset account of trading securities.
Explanation:
Trading security are reported on its fair market value at each period end. The gain or loss should be recorded.
Dec 27, Purchase price = $66,000
Dec 31, Fair value = $72,000
Unrealized gain = $72,000 - $66,000 = $6,000
