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In: AccountingInvestment in Trading and AFS SecuritiesIn 2019, a company purchases debt securities at a par...Investment in Trading and AFS SecuritiesIn 2019, a company purchases debt securities at a par value of$500,000. Their year-end value is $520,000. In 2020, thesesecurities are sold for $525,000 and new securities are purchasedfor $700,000. At the end of 2020, the securities have not yet beensold, and have a value of $600,000.RequiredPrepare the journal entries to record the above information for2019 and 2020, assuming that:a. The securities are categorized as trading securities.General JournalDateDescriptionDebitCredit2019________________________________________________________________________________________________________To record purchase of trading securities.________________________________________________________________________________________________________To record change in value for trading securities atyear-end.2020Cash______________________________Investment in trading securitiesTo record sale of trading securities.______________________________________________________________________________________To record purchase of new trading securities.__________________________________________________________________________________________To record change in value for trading securities atyear-end.b. The securities are categorized as AFS securities, and (1) thecompany intends to sell the securities held at the end of 2020before the loss is recovered, or (2) the company intends to holdthe securities, and their decline in value is attributed toexpected credit losses, or (3) the company intends to hold thesecurities, and their decline in value is attributed to a rise inmarket interest rates.General JournalDateDescriptionDebitCreditb (1)2019__________________________________________________________________________________________________To record purchase of AFS securities.________________________________________________________________________________________________To record change in value for AFS securities at year-end.2020Cash______________________________Investment in AFS securities_______________________________To record slae of AFS securities__________________________________________________________________________________________________To record purchase of new AFS securities._________________________________________AnswerAnswer_________________________________________AnswerAnswerTo record change in value for AFS securities at year-end.(2)2020CashAnswerAnswer________________________________________________AnswerAnswerInvestment in AFS securitiesAnswerAnswer________________________________________________AnswerAnswerTo record sale of AFS securities.________________________________________________AnswerAnswer________________________________________________AnswerAnswerTo record purchase of new AFS securities.________________________________________________AnswerAnswer________________________________________________AnswerAnswerTo record impairment loss for AFS securities at year-end.(3)2020CashAnswerAnswer________________________________AnswerAnswerInvestment in AFS securitiesAnswerAnswer________________________________AnswerAnswerTo record sale of AFS securities.__________________________________AnswerAnswer__________________________________AnswerAnswerTo record purchase of AFS securities._______________________________AnswerAnswer_______________________________AnswerAnswerTo record change in value for AFS securities at year-end.