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 1,500 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 $23.50 per share less a $525 commission. July 5 Sold 1,580 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 $489 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, $20.00; and Sony, $35.00. 2019 Feb. 27 Purchased 2,400 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 $889 commission. June 30 Purchased 1,400 shares of Black & Decker at $36.00 per share plus a $435 commission. Aug. 3 Sold 600 shares of Sara Lee at $16.25 per share less a $435 commission. Nov. 1 Sold 900 shares of Eastman Kodak at $22.75 per share less a $625 commission. Dec. 31 Per share fair values for stocks in the portfolio are: Black & Decker, $39.00; and Microsoft, $69.00. 3. Complete the following table that summarizes (a) the realized gains and losses and (b) the unrealized gains or losses for the portfolio of long-term available-for-sale securities at each year-end. (Do not round your intermediate calculations. Losses should be indicated 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 Realized gains (losses) $ (10,065) Unrealized Gains (Losses) 2017 Balance in the fair value adjustment AFS account 2018 2019 < Prey 7 of 11 Score answer >

Answer 1

In order to find Realized gain or loss and Unrealized gain or loss, please find table below showing calculation of the same Investment-wise:

Long term investment in Shares of Johnson & Johnson
Date	Description	Ref	Amount (in $)
1/20/2017	Purchases (1000 shares @ 20.5)	A	20,500.00
	Add: Commission	B	240.00
	Share value as at Dec 31	C=A+B	20,740.00
	Fair Value (1000 shares @ 21.5)	D	21,500.00
	Difference between share value less fair value	D-C	760.00
12/31/2017	Thus, Unrealised gain or loss		760.00
1/1/2018	C/F value of Share	C	20,740.00
4/15/2018	Sale of Share (1000 shares @ 23.5)	E	23,500.00
	Less: commission	F	525.00
	Actual sale value	G=E-F	22,975.00
12/31/2018	Realised Gain or (Loss) on sale	G-C	2,235.00
Long term investment in Shares of Sony
Date	Description	Ref	Amount (in $)
2/9/2017	Purchases (1200 shares @ 46.2)	A	55,440.00
	Add: Commission	B	225.00
	Share value as at Dec 31	C=A+B	55,665.00
12/31/2017	Fair Value (1200 shares @ 38)	D	45,600.00
	Difference between share value less fair value	E=D-C	-10,065.00
12/31/2017	Thus, Unrealised gain or (loss)	E	-10,065.00
1/1/2018	C/F value of Share	C	55,665.00
12/31/2018	Fair Value (1200 shares @ 35)	F	42,000.00
	Difference between share value less fair value	G=F-C	-13,665.00
	Unrealised Gain or (Loss) C/f from year 2017	E	-10,065.00
12/31/2018	Thus, Unrealised gain or (loss) additional entry for	G-E	-3,600.00
1/1/2019	C/F value of Share	C	55,665.00
6/21/2019	Sale of Share (1200 shares @ 48)	H	57,600.00
	Less: commission	I	880.00
	Actual sale value	J=H-I	56,720.00
12/31/2018	Realised Gain or (Loss) on sale	J-C	1,055.00
Long term investment in Shares of Mattel
Date	Description	Ref	Amount (in $)
6/12/2017	Purchases (1500 shares @ 27)	A	40,500.00
	Add: Commission	B	195.00
	Share value as at Dec 31	C=A+B	40,695.00
	Fair Value (1500 shares @ 30.9)	D	46,350.00
	Difference between share value less fair value	D-C	5,655.00
12/31/2017	Thus, Unrealised gain or (loss)		5,655.00
1/1/2018	C/F value of Share	C	40,695.00
7/5/2018	Sale of Share (1500 shares @ 23.9)	E	35,850.00
	Less: commission	F	235.00
	Actual sale value	G=E-F	35,615.00
12/31/2018	Realised Gain or (Loss) on sale	G-C	-5,080.00
Long term investment in Shares of Sara Lee
Date	Description	Ref	Amount (in $)
7/22/2018	Purchases (600 shares @ 22.5)	A	13,500.00
	Add: Commission	B	480.00
	Share value as at Dec 31	C=A+B	13,980.00
	Fair Value (600 shares @ 20)	D	12,000.00
	Difference between share value less fair value	D-C	-1,980.00
12/31/2018	Thus, Unrealised gain or (loss)		-1,980.00
1/1/2019	C/F value of Share	C	13,980.00
8/3/2019	Sale of Share (600 shares @ 16.25)	E	9,750.00
	Less: commission	F	435.00
	Actual sale value	G=E-F	9,315.00
12/31/2019	Realised Gain or (Loss) on sale	G-C	-4,665.00
Long term investment in Shares of Eastman Kodak
Date	Description	Ref	Amount (in $)
8/19/2018	Purchases (900 shares @ 17)	A	15,300.00
	Add: Commission	B	198.00
	Share value as at Dec 31	C=A+B	15,498.00
	Fair Value (900 shares @ 19.25)	D	17,325.00
	Difference between share value less fair value	D-C	1,827.00
12/31/2018	Thus, Unrealised gain or (loss)		1,827.00
1/1/2019	C/F value of Share	C	15,498.00
11/1/2019	Sale of Share (900 shares @ 22.75)	E	20,475.00
	Less: commission	F	625.00
	Actual sale value	G=E-F	19,850.00
12/31/2019	Realised Gain or (Loss) on sale	G-C	4,352.00
Long term investment in Shares of Microsoft
Date	Description	Ref	Amount (in $)
2/27/2019	Purchases (2400 shares @ 67)	A	160,800.00
	Add: Commission	B	525.00
	Share value as at Dec 31	C=A+B	161,325.00
	Fair Value (2400 shares @ 69)	D	165,600.00
	Difference between share value less fair value	D-C	4,275.00
12/31/2019	Thus, Unrealised gain or (loss)		4,275.00
Long term investment in Shares of Black & Decker
Date	Description	Ref	Amount (in $)
6/30/2019	Purchases (1400 shares @ 36)	A	50,400.00
	Add: Commission	B	435.00
	Share value as at Dec 31	C=A+B	50,835.00
	Fair Value (1400 shares @ 39)	D	54,600.00
	Difference between share value less fair value	D-C	3,765.00
12/31/2019	Thus, Unrealised gain or (loss)		3,765.00

Thus based on above calculation:

a) Realized Gain or (Loss)

Realized Gain or (Loss)
	2017	2018	2019
Sale of Johnson & Johnson Shares		2,235.00
Sale of Mattel Shares		-5,080.00
Sale of Sara Lee Shares			-4,665.00
Sale of Sony Shares			1,055.00
Sale of Eastman Kodak Shares			4,352.00
	0.00	-2,845.00	742.00

b) Unrealized Gain or Loss:

Balance in the fair value adjustment AFS Account	2017	2018	2019
Johnson & Johnson	760.00
Mattel	5,655.00
Sony	-10,065.00	-13,665.00
Sara Lee		-1,980.00
Eastman Kodak		1,827.00
Microsoft			4,275.00
Black & Decker			3,765.00
Balance in the fair value adjustment AFS Account	-3,650.00	-13,818.00	8,040.00