I have a question whether trading securities need to be reclassified to long term securities. 
Could you provide us with a list all trading securities, giving the cost and market value of each at December 31, 20X3 and December 31, 20X4?
Our investments in trading securities at December 31, 20X4 are as follows:
Number of Shares Cost Market Value
General Electric 200 $15,000 $16,400 
General Motors 1,225 7,000 9,720 
Our investments in trading securities at December 31, 20X3 were as follows:
Number of Shares Cost Market Value
General Electric 200 $15,000 $17,240
General Mills 300 18,000 19,400
General Motors 1,225 7,000 10,100 
General Mills, which cost $18,000, was sold for $20,100, net of commissions. 
6. Since you still own General Electric and General Motors, should these be reclassified to long-term securities?
Well, our intent in holding these securities is still to sell them as soon as possible for a profit, so we think they qualify as trading securities. The market is just not cooperating with us at the moment.

If so, what should be the journal entries?

    • 7 years ago
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      trading_sec_3_oct13.pdf