Some of Powderhorn Corporation's investment securities are classified as trading securities and some are classified as available-for-sale.The cost and market value of each category at December 31, 2011, are shown on the next page.
|
Cost
|
Fair Value
|
Unrealized Gain (Loss)
|
|
Trading securities
|
$93,600
|
$94,900
|
$1,300
|
|
Available-for-sale securities
|
$48,800
|
$51,400
|
$2,600
|
At December 31, 2010, the Market Adjustment-Trading account had a debit balance of $9,200, and the Market Adjustment-Available-for-Sale account had a credit balance of $5,750. Prepare the required journal entries for each group of securities for December 31, 2011.