Lansbury inc sold part of its investment portfolio for 15000. This transaction resulted in a gain of 3400 for the firm. The company classifies its investments as available for sale. Where do I start to journalize this?

At the risk of being serious
Open your journal
Pick up your pen
Debit investments
Credit Profit on sale of Investments
I'm sure you can guess where the difference goes

Haha Paraclete I opened my journal, and picked up my pen lol. I really don't get the investments bit in this class. Can you be more specific about amounts so that I understand? The difference of 11600 goes to gains available for sale right?

That amount is by calculation the book value of the investment, So Credit investments; the sale price goes to bank, Debit Bank ; and the profit you were given, Credit, goes to profit on sale of investment

Got it. Thank you!

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Originally Posted by paraclete

That amount is by calculation the book value of the investment, So Credit investments; the sale price goes to bank, Debit Bank ; and the profit you were given, Credit, goes to profit on sale of investment

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