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  • Mar 17, 2009, 09:32 PM
    pequot22
    Marketable securities
    How do I journalize marketable securities with a gain
  • Mar 17, 2009, 10:52 PM
    ROLCAM

    Example:-

    You bought 10 BHP shares for $3,000.

    You sold 10 BHP shares for $3,500.

    You made a gain of $500 on the 2 transactions.

    1) DEBIT Shares Account $3,000
    2) CREDIT Bank Account $3,000

    Being bought 10 BHP shares for $3,000.

    ##############################

    1) DEBIT Bank Account $3,500
    2) CREDIT Shares Account $3,000
    3) CREDIT Gain on Shares Account $ 500.

    Being sold 10 BHP shares for $3,500
    Making a gain of $500.

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