All right now, let's go through all the details and the journal entries for trading securities. So remember a trading security. This is a short term investment that we expect to sell within the near term through active trading. Right? We're going to actively be trading these securities. So, trading securities, they're gonna earn income from dividends when we receive dividends, right, dividends received and the changes in fair value. Okay, so remember fair value. This is the market price of the investment. So if the market price of the investment goes up or down, well, we're gonna take gains or losses based on those changes in fair value. Okay. So remember when we talk about the classification, well, this is on the balance sheet, the balance sheet classification. These are gonna be current because we're planning on selling them in the short term. We were planning on getting rid of them soon. So they're gonna be current assets. And the initial measurement, we're always gonna measure our investments at cost initially. And then we're gonna adjust them accordingly based on the type of investment. So the subsequent measure measurement for a trading security keep doing far is at fair value. Okay. We're going to show on our balance sheet later on after we've purchased it. We're gonna adjust the value to fair value. And the unrealized gains or losses. So unrealized means have not sold right. We have not sold the investment yet. These are gonna show up on the income statement. So those changes in fair value those gains or losses are gonna show up on the income statement. Um, even before we sell the the trading security. So let's go ahead and do our cost. Excuse me? Our cost uh journal entry when we first purchased the trading security. So let's follow an example here on november 1st year one abc company purchased 500 shares of X. Y. Z. Company Common stock at a price of $60 per share. Abc company expects to sell the securities in the near future. So they told us it's in the near future. They didn't specifically say it's a trading security, but we can assume it's a trading security because of this terminology. Okay, so we purchased 500 shares of stock at $60 per share. Well, we want to find the total amount of our investment. How much money did we spend? Well, the cost is going to equal the 500 shares that we bought times $60 per share that we paid. And that's gonna come out to 30,000. Right, we spent 30,000 on this stock. So that's the number that we need in our journal entry. We have to create an asset for the investment of 30,000. And we paid for it in cash. So journal entry, we're probably used to by now is we're going to debit our investment, we're going to debit what we purchase. So it's gonna be investment and I like to be a little bit um a little bit more transparent. So I always say something like investment in trading securities, but we'll say investment in T. S. for trading securities, right? Investment in T. S. That's our um asset that we just created. And that's gonna be a debit for 30,000. And the other side of this is the cash, right? We paid cash so we need to get the cash off of our books with the credit And that's gonna be for 30,000 as well. Right? The amount of money that we spent on the investment. So all we did was trade one asset for another right we spent cash to get an asset. So we're gonna have our investment account Increased by 30,000 And our cash decreased by 30,000. So that's just our total assets are gonna stay the same. It's just which assets we have. Nothing too crazy there. Let's pause and then we'll try the next journal entry.