Question

2017 Jan. 20 Purchased 1,000 shares of Ford Motor Co. at $27 per share plus a $130 с㎝ussion. Feb. 9 Purchased 2,900 shares of Lucent at $31 per share plus a $195 commission 0ct. 12 Purchased 740 shares of Z-Seven at $7.60 per share plus a 100 commission. Dec. 31 Fair value of the short-term investnents in trading securities is $126, 300. 2018 Apr. 15 Sold 1, 000 shares of Ford Motor Co. at $31 per share less a $290 conmission. July 5 Sold 740 shares of Z-Seven at $10.25 per share less a $95 commission. July 22 Purchased 1,900 shares of Hunt Corp. at $33 per share plus a $220 comnission. Aug. 19 Purchased 1,800 shares of Donna Karan at $43. 00 per share plus a $105 comnission. Dec. 3 Fair value of the short-term investnent s in trading securities is $224, 790. 2019 Feb. 27 Purchased 3,800 shares of HCA at $34 per share plus a $430 commission ar Sold 1, 900 shares of hunt at $28 per share less a $130 commission June 2 Sold 2, 900 shares of Lucent at $28.75 per share less a $37 commission. June 30 Purchased 1,200 shares of Black & Decker at $47.50 per share plus a $595 commission Nov. Sold 1, 800 shares of Doma Karan at $43.00 per share less a $124 conmission. Dec. 3 Fair value of the short-term investnents in trading securities is $191, 900. Required: Prepare journal entries to record these short-term investment activities for the years shown. On December 31 of each year, prepare the adjusting entry to record any necessary fair value adjustment for the portfolio of trading securities. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations.) Complete this question by entering your answers in the tabs belovw 2017 2018 2019 Prepare journal entries to record these short-term investment activities for the years shown. On December 31 of each year prepare the adjusting entry to record any necessary fair value adjustment for the portfolio of trading securities No General Journal Debit Credit Feb 27 Short-term investments-Trading (HCA) 129,630 Cash 129,630 Mar 03 Cash 53,070 Loss on sale of short-term investments 9,850 Short-term investments-Trading (Hunt) 62,920 Jun 21 Cash 83,338 Loss on sale of short-term investments 6,757 Short-term investments-Trading (Lucent) 90,095 Jun 30 Short-term investments-Trading (B&D) 57,595 Cash 57,595 Nov 01 Cash 77,276 229 Loss on sale of short-term investments Short-term investments-Trading (D.Karan) 77,505 6 Dec 31 Fair value adjustment-Trading (ST) 13,756 Unrealized gain-Income 13,756

Answer 1

1 No. Date General Journal Debit Credit 1Feb-27 Short Term Investments Trading(HCA) 129630 Cash 129630 4 ((3800* $34) $430) 6 2 Mar-03 Cash 53070 9850 Loss on sale of short-term investments Short term investments Trading(Hunt) (1900 $28) $130) 62920 10 3 Jun-21 Cash 83338 12 13 Loss on sale of short-term investments 6757 Short term investments Trading(Lucent) ((2900 * $28.75) $37) 90095 15 16 17 I 18 19 20 21 4Jun-30| Short Term Investments - Trading(B&D) 57595 Cash 57595 ((1200 * $47.50)595) 5 Nov-01 Cash 77276 Loss on sale of short-term investments 229 Short term investments Trading(D.Karan) ((1800 $43) $124) 77505 23 24 25 26 6 Dec-31 Fair Value adjustment Trading(ST) 4675 Unrealized gain Income 4675

(Fair Value of the short term investments $191900 Investments Held: HCA $129630 Black & Decker - $57595 Therefore Net Gain $191900-($129630 + $57595) Therefore Net Gain $191900-$187225 Unrealized Gain $4675)