Answer:
The full question is as follows <em>"The following accounts were among those reported on Good Corp.'s balance sheet at December 31, year 1: Available-for-sale securities (market value $140,000) $80,000 Preferred stock, $20 par value, 20,000 shares issued and outstanding 400,000 Additional paid-in capital on preferred stock 30,000 Retained earnings 900,000 On January 20, year 2, Good exchanged all of the available-for-sale securities for 5,000 shares of Good's preferred stock. Market values at the date of the exchange were $150,000 for the available-for-sale securities and $30 per share for the preferred stock. The 5,000 shares of preferred stock were retired immediately after the exchange. Prepare the general journal entry, without explanation, to record this event."</em>
Date    General Journal Entry                                  Debit             Credit
             Preferred stock A/c                                   $100,000
              (5000*$20)          
             Add. paid-in capital on preferred stock   $7,500
              (30000 * 1/ 4)          
             Retained earnings                                     $42,500
                   Trading securities A/c                                               $140,000
                   Gain on exchange of securities                                $10,000