Transfer between Categories: To and From Trading
The company purchased the following securities during Year 1:
|
|
|
|
Market Value |
|
Security |
Classification |
Cost |
(Dec 31, Year 1) |
|
A |
Trading |
$5,000 |
$4,000 |
|
B |
Available for sale |
6,000 |
8,000 |
In Year 2, the company reclassified both of these securities. Security A was reclassified as available for sale; the market value of security A at the time of the reclassification was $5,500. Security B was reclassified as trading; the market value of security B at the time of the reclassification was $4,100. Make the journal entries necessary to record both of these reclassifications.