Your Ask Joey ™ Answer

What is the journal entry to record an unrealized loss on a “trading” security?

Since the investment is classified as “trading”, unrealized and realized activity is recognized in the income statement and not to other comprehensive income.

The company would debit unrealized loss on trading security (decreases net income) and credit the investment account (reduces the value of the investment in the form of a valuation allowance).

Back To All Questions

You might also be interested in...