On January 1, Valuation Allowance for Trading Investments had a zero balance. On December 31, the cost of the trading securities portfolio was $59,600, and the fair value was $61,600. Prepare the December 31 adjusting journal entry to record the unrealized gain or loss on trading investments.

Dr Valuation Allowance for Trading Investments $2,000

Cr Unrealized Gain on Trading Investments $2,000

Explanation:

Preparation for the December 31 adjusting journal entry to record the unrealized gain or loss on trading investments

Based on the information given if on December 31, the cost of the trading securities portfolio was the amount of $59,600 while the fair value was the amount of $61,600 which means that the December 31 adjusting journal entry to record the unrealized gain or loss on trading investments will be :

Dr Valuation Allowance for Trading Investments $2,000

Cr Unrealized Gain on Trading Investments $2,000

($61,600-$59,600)

odd consecutive integers are odd integers that follow each other. they have a difference of 2 between every two numbers. if n is an odd integer, then n, n+2, n+4 and n+6 will be odd consecutive integers. the first number in the pattern is always the variable on its own or in this case, "n". examples.

the answer is a.

by: nicholas dooley