lmn-company-sold-its-trading-securities-for-60000-which-were-last-valued-at-5500

Question

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

Accepted Answer

Debit Cash $$60,000; Credit Investment in Trading Securities 55$$,000; Credit Realized Gain $5,000

Answer

Debit Investment in Trading Securities $$55,000; Credit Cash 60$$,000; Credit Realized Gain $5,000

Answer

Debit Cash $$55,000; Credit Investment in Trading Securities 60$$,000; Debit Realized Gain $5,000

Answer

Debit Cash $$60,000; Credit Realized Gain 5$$,000; Credit Investment in Trading Securities $55,000

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