investment sold journal entry
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investment sold journal entry
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Answer:
If marketable securities are sold for a price that is higher than their cost, the difference represents a gain on sale of marketable securities. When securities are sold at a gain, cash account is debited, marketable securities account and gain on sale of investment account are credited.
Answer:
Sale of marketable securities at a gain:
If marketable securities are sold for a price that is higher than their cost, the difference represents a gain on sale of marketable securities. When securities are sold at a gain, cash account is debited, marketable securities account and gain on sale of investment account are credited.
The journal entry for the sale of marketable securities at a gain is given below: