Malox Co. purchased short-term investments in available-for-sale securities at a cost of $100,000 on November 25, 2009. At December 31, 2009, these securities had a market value of $94,000. This is the first and only time the company has purchased such securities.
Requirement 1:
Prepare the December 31, 2009, year-end adjusting entry for the securities' portfolio. (Omit the "$" sign in your response.)
Date General Journal Debit Credit
Dec. 31, 2009
Requirement 2:
Prepare the April 6, 2010, entry when Malox sells one-fourth of these securities for $27,000
Date General Journal Debit Credit
Apr. 6, 2010