1150 15410 29520 250 52180 SolutionAnswer a There is a loss

1,150 $15,410 29,520 250 $52,180

Solution

Answer

a.

There is a loss of $2,840 (52,180 – 49,340) during the valuation

Dr. $

Cr. $

Unrealized Gain (Loss) on Trading Investments

2,840

Valuation Allowance for Trading Investments

2,840

(Being decrease in Fair value of investment recorded)

b.

Brokerage paid while purchasing shares are part of the cost.

Dr. $

Cr. $

Investment in Carroll Inc. (600 Shares*$29 + $60)

17,460

Bank

17,460

(Being Investment purchased)

	Dr. $	Cr. $
Unrealized Gain (Loss) on Trading Investments	2,840
Valuation Allowance for Trading Investments		2,840
(Being decrease in Fair value of investment recorded)