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Wells Inc.reported these transactions relating to marketable Trading Investments intended to generate net income and to be sold in the near term:

-The entry, if any is required, to record the value of the investment on December 31 would include a debit to
A)Realized Losses for $450.
B)Unrealized Loss for $750.
C)No entry is required.
D)Unrealized Losses of $450.

Question

Use the following information to answer questions 
Wells Inc.reported these transactions relating to marketable Trading Investments intended to generate net income and to be sold in the near term:
 
-The entry, if any is required, to record the value of the investment on December 31 would include a debit to
A)Realized Losses for $450. 
B)Unrealized Loss for $750. 
C)No entry is required. 
D)Unrealized Losses of $450.

Quizplus · Accepted Answer

The entry would include a debit to Unrealized Losses of $450 to reflect the decrease in the value of the investment that has not yet been realized through a sale.

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