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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.

Respuesta :

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).

Explanation: