LMN Company sold its trading securities for \$60,000, which were last valued at \$55,000. How should the realized gain be recorded?

• A. Debit Cash \$60,000; Credit Investment in Trading Securities \$55,000; Credit Realized Gain \$5,000
• B. Debit Investment in Trading Securities \$55,000; Credit Cash \$60,000; Credit Realized Gain \$5,000
• C. Debit Cash \$55,000; Credit Investment in Trading Securities \$60,000; Debit Realized Gain \$5,000
• D. Debit Cash \$60,000; Credit Realized Gain \$5,000; Credit Investment in Trading Securities \$55,000

Answer: (A)