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Question: 9 trading securities on july 1 2018 wolfpack corporation purchased...

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(#9) Trading Securities

On July 1, 2018, Wolfpack Corporation purchased securities which it intends to buy and sell frequently. These securities consisted of (a) Todd Corporation 10%, 5-year bonds with a face value of $20,000 which were purchased for $18,500 and (b) 400 shares of Cornett Company common stock which were purchased at $40 per share. Assume that on December 31, 2018, the investment in Todd Corporation bonds has a market value of $22,000, and the investment in Cornett Company stock has a market value of $15,000.

Required:

Prepare the year-end journal entry to record the unrealized gain or loss.
CHART OF ACCOUNTS
Wolfpack Corporation
General Ledger
ASSETS
111 Cash
113 Investment in Trading Securities
121 Accounts Receivable
141 Inventory
152 Prepaid Insurance
181 Equipment
189 Accumulated Depreciation
191 Investment in Held-to-Maturity Debt Securities
LIABILITIES
211 Accounts Payable
231 Salaries Payable
250 Unearned Revenue
261 Income Taxes Payable
EQUITY
311 Common Stock
331 Retained Earnings
REVENUE
411 Sales Revenue
431 Interest Income
EXPENSES
500 Cost of Goods Sold
511 Insurance Expense
512 Utilities Expense
521 Salaries Expense
532 Bad Debt Expense
540 Interest Expense
541 Depreciation Expense
559 Miscellaneous Expenses
910 Income Tax Expense
912 Unrealized Holding Gain/Loss

Prepare the journal entry to record the unrealized gain or loss on December 31, 2018.

GENERAL JOURNAL !(Just need amounts)!

DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT

1

Dec. 31

Investment in Trading Securities

2

Unrealized Holding Gain/Loss

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