Splendid Company purchased equity securities during 2013 to be held as investments. the cost and market value of the investments are:
December 31,2013
Trading securities (cost) 2,000,000 (market) 2,500,000
Securities not held for trading (cost) 3,000,000 (market) 2,900,000
December 31,2014
Trading securities (cost) 2,000,000 (market) 2,200,000
Securities not held for trading (cost) 3,000,000 (market) 2,300,000
The securities not held for trading are measured at fair value through other comprehensive income by election.
Required: Prepare journal entries for 2013 and 2014
