DEF Company sold its trading securities for \$25,000, which were last valued at \$20,000. What is the journal entry for the realized gain?

• A. Debit Cash \$25,000; Credit Investment in Trading Securities \$20,000; Credit Realized Gain \$5,000
• B. Debit Cash \$25,000; Credit Realized Gain \$5,000; Credit Investment in Trading Securities \$20,000
• C. Debit Investment in Trading Securities \$20,000; Credit Cash \$25,000; Credit Realized Gain \$5,000
• D. Debit Cash \$20,000; Credit Investment in Trading Securities \$25,000; Debit Realized Gain \$5,000

Answer: (A)