Question

Grass Security, which began operations in 2017, invests in long-term available-for-sale securities. Following is a series of transactions and events determining its long-term investment activity 2017 Jan. 20 Purchased 1,000 shares of Johnson & Johnson at $20.50 per share plus a $240 commission. Feb. 9 Purchased 1,200 shares of Sony at $46.20 per share plus a $225 commission. June 12 Purchased 1,5e0 shares of Mattel at $27.00 per share plus a $195 commission. Dec. 31 Per share fair values for stocks in the portfolio are Johnson & Johnson, $21.50; Mattel, $30.90; and Sony, $38. 2018 Apr. 15 Sold 1,000 shares of Johnson & Johnson at $23.5e per share less a $525 commission. July 5 Sold 1,500 shares of Mattel at $23.90 per share less a $235 commission. July 22 Purchased 600 shares of Sara Lee at $22.50 per share plus a $480 commission. Aug. 19 Purchased 900 shares of Eastman Kodak at $17 per share plus a $198 commission. Dec. 31 Per share fair values for stocks in the portfolio are: Kodak, $19.25; Sara Lee, $20.e0; and Sony, $35.00 2019 Feb. 27 Purchased 2,460 shares of Microsoft at $67.00 per share plus a $525 commission. June 21 Sold 1,200 shares of Sony at $48.00 per share less an $880 commission. June 30 Purchased 1,400 shares of Black & Decker at $36.00 per share plus a $435 commission 3 Sold 600 shares of Sara Lee at $16.25 per share less a $435 commission. 1 Sold 900 shares of Eastman Kodak at $22.75 per share less a $625 commission. Aug. Nov. Dec. 31 Per share fair values for stocks in the portfolio are: 8lack & Decker, $39.00; and Microsoft, $69.00 B. Complete the following table that summarizes (a) the realized gains and losses and (b) the unrealized gains or losses for the oortfolio of long-term available-for-sale securities at each year-end. (Do not round your intermediate calculations. Losses should be ndicated by a minus sign.) Realized Gains (Losses) 2017 2018 2019 Sale of Johnson & Johnson shares Sale of Mattel shares Sale of Sara Lee shares Sale of Sony shares Sale of Eastman Kodak shares $ (10,065) Unrealized Gains (Losses) 0 $ 0 $ Realized gains (losses) 2019 2017 2018 Balance in the fair value adjustment AFS account Score answer> of 11 < Prev

Answer 1

Realized Gains (Losses)
	2017	2018	2019
Sale of Johnson & Johnson shares	0	2235	0
Sale of Mattel shares	0	-5080	0
Sale of Sara Lee shares	0	0	-4665
Sale of Sony shares	0	0	1055
Sale of Eastman Kodak shares	0	0	4352
Realized gains (losses)	0	-2845	742
Unrealized Gains (Losses)
	2017	2018	2019
Balance in the Fair Value Adjustment AFS account
Beginning of year-Debit (Credit)	0	-3650	-13818
Required balance-End of year Debit (Credit)	-3650	-13818	8040
Required adjustment unrealized gain (loss)	-3650	-10168	21858

Working:

December 31, 2017	Number of Shares	Share Price at 12/31/17	Fair Value	Cost	Unrealized Gain (Loss)
Johnson & Johnson	1000	21.50	21500	20740
Sony	1200	38.00	45600	55665
Mattel	1500	30.90	46350	40695
Total			113450	117100	-3650
December 31, 2018	Number of Shares	Share Price at 12/31/18	Fair Value	Cost	Unrealized Gain (Loss)
Kodak	900	19.25	17325	15498
Sara Lee	600	20.00	12000	13980
Sony	1200	35.00	42000	55665
Total			71325	85143	-13818
December 31, 2019	Number of Shares	Share Price at 12/31/19	Fair Value	Cost	Unrealized Gain (Loss)
Black & Decker	1400	39.00	54600	50835
Microsoft	2400	69.00	165600	161325
Total			220200	212160	8040