def-company-sold-its-trading-securities-for-25000-which-were-last-valued-at-2000

Question

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?

Accepted Answer

Debit Cash $$25,000; Credit Investment in Trading Securities 20$$,000; Credit Realized Gain $5,000

Answer

Debit Cash $$25,000; Credit Realized Gain 5$$,000; Credit Investment in Trading Securities $20,000

Answer

Debit Investment in Trading Securities $$20,000; Credit Cash 25$$,000; Credit Realized Gain $5,000

Answer

Debit Cash $$20,000; Credit Investment in Trading Securities 25$$,000; Debit Realized Gain $5,000

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?