def-company-sold-its-afs-securities-for-40000-which-had-a-previous-fair-value-of

Question

DEF Company sold its AFS securities for $$40,000, which had a previous fair value of 35$$,000. What is the journal entry for the realized gain?

Accepted Answer

Debit Cash $$40,000; Credit Investment in AFS Securities 35$$,000; Credit Realized Gain on Sale of AFS Securities $5,000

Answer

Debit Cash $$35,000; Credit Investment in AFS Securities 35$$,000; Credit Realized Gain on Sale of AFS Securities $5,000

Answer

Debit Cash $$40,000; Credit Investment in AFS Securities 40$$,000

Answer

Debit Cash $$35,000; Credit Investment in AFS Securities 40$$,000; Debit Realized Gain on Sale of AFS Securities $5,000

DEF Company sold its AFS securities for \$40,000, which had a previous fair value of \$35,000. What is the journal entry for the realized gain?