Grass Security, which began operations in 2013, invests inlong-term available-for-sale securities. Following is a series oftransactions and events determining its long-term investmentactivity.
2013
Jan. 20 Purchased 2,600 shares of Johnson & Johnson at$22.10 per share plus a $400 commission.
Feb. 9 Purchased 2,800 shares of Sony at $47.80 per share plus a$385 commission.
June 12 Purchased 3,100 shares of Mattel at $28.60 per shareplus an $355 commission.
Dec. 31 Per share fair values for stocks in the portfolio areJohnson & Johnson, $23.10; Mattel, $32.50; Sony, $39.60.
2014
Apr. 15 Sold 2,600 shares of Johnson & Johnson at $25.10 pershare less a $685 commission.
July 5 Sold 3,100 shares of Mattel at $25.50 per share less a$395 commission.
July 22 Purchased 2,200 shares of Sara Lee at $24.10 per shareplus a $640 commission.
Aug. 19 Purchased 2,500 shares of Eastman Kodak at $18.60 pershare plus a $358 commission.
Dec. 31 Per share fair values for stocks in the portfolio are:Kodak, $20.85; Sara Lee, $21.60; Sony, $36.60.
2015
Feb. 27 Purchased 4,000 shares of Microsoft at $68.60 per shareplus a $685 commission.
June 21 Sold 2,800 shares of Sony at $49.60 per share less a$1,040 commission.
June 30 Purchased 3,000 shares of Black & Decker at $37.60per share plus a $595 commission.
Aug. 3 Sold 2,200 shares of Sara Lee at $17.85 per share less a$595 commission.
Nov. 1 Sold 2,500 shares of Eastman Kodak at $24.35 per shareless a $785 commission.
Dec. 31 Per share fair values for stocks in the portfolio are:Black & Decker, $40.60; Microsoft, $70.60.
1. Prepare journal entries to record these transactions and eventsand any year-end fair value adjustments to the portfolio oflong-term available-for-sale securities
2. Prepare a table that summarizes the (a) total cost, (b) totalfair value adjustment, and (c) total fair value of the portfolio oflong-term available-for-sale securities at each year-end
3. Prepare a table that summarizes (a) the realized gains andlosses and (b) the unrealized gains or losses for the portfolio oflong-term available-for-sale securities at each year-end.
Grass Security, which began operations in 2013, invests inlong-term available-for-sale securities. Following is a series oftransactions and events determining its long-term investmentactivity.
2013
Jan. 20 Purchased 2,600 shares of Johnson & Johnson at$22.10 per share plus a $400 commission.
Feb. 9 Purchased 2,800 shares of Sony at $47.80 per share plus a$385 commission.
June 12 Purchased 3,100 shares of Mattel at $28.60 per shareplus an $355 commission.
Dec. 31 Per share fair values for stocks in the portfolio areJohnson & Johnson, $23.10; Mattel, $32.50; Sony, $39.60.
2014
Apr. 15 Sold 2,600 shares of Johnson & Johnson at $25.10 pershare less a $685 commission.
July 5 Sold 3,100 shares of Mattel at $25.50 per share less a$395 commission.
July 22 Purchased 2,200 shares of Sara Lee at $24.10 per shareplus a $640 commission.
Aug. 19 Purchased 2,500 shares of Eastman Kodak at $18.60 pershare plus a $358 commission.
Dec. 31 Per share fair values for stocks in the portfolio are:Kodak, $20.85; Sara Lee, $21.60; Sony, $36.60.
2015
Feb. 27 Purchased 4,000 shares of Microsoft at $68.60 per shareplus a $685 commission.
June 21 Sold 2,800 shares of Sony at $49.60 per share less a$1,040 commission.
June 30 Purchased 3,000 shares of Black & Decker at $37.60per share plus a $595 commission.
Aug. 3 Sold 2,200 shares of Sara Lee at $17.85 per share less a$595 commission.
Nov. 1 Sold 2,500 shares of Eastman Kodak at $24.35 per shareless a $785 commission.
Dec. 31 Per share fair values for stocks in the portfolio are:Black & Decker, $40.60; Microsoft, $70.60.
| 1. | Prepare journal entries to record these transactions and eventsand any year-end fair value adjustments to the portfolio oflong-term available-for-sale securities
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Related questions
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 2,100 shares of Johnson & Johnson at $21.60 per share plus a $350 commission. | ||
| Feb. | 9 | Purchased 2,300 shares of Sony at $47.30 per share plus a $335 commission. | ||
| June | 12 | Purchased 2,600 shares of Mattel at $28.10 per share plus a $305 commission. | ||
| Dec. | 31 | Per share fair values for stocks in the portfolio are Johnson & Johnson, $22.60; Mattel, $32.00; and Sony, $39.10. |
2018
| Apr. | 15 | Sold 2,100 shares of Johnson & Johnson at $24.60 per share less a $635 commission. | ||
| July | 5 | Sold 2,600 shares of Mattel at $25.00 per share less a $345 commission. | ||
| July | 22 | Purchased 1,700 shares of Sara Lee at $23.60 per share plus a $590 commission. | ||
| Aug. | 19 | Purchased 2,000 shares of Eastman Kodak at $18.10 per share plus a $308 commission. | ||
| Dec. | 31 | Per share fair values for stocks in the portfolio are: Kodak, $20.35; Sara Lee, $21.10; and Sony, $36.10. |
2019
| Feb. | 27 | Purchased 3,500 shares of Microsoft at $68.10 per share plus a $635 commission. | ||
| June | 21 | Sold 2,300 shares of Sony at $49.10 per share less a(n) $990 commission. | ||
| June | 30 | Purchased 2,500 shares of Black & Decker at $37.10 per share plus a $545 commission. | ||
| Aug. | 3 | Sold 1,700 shares of Sara Lee at $17.35 per share less a $545 commission. | ||
| Nov. | 1 | Sold 2,000 shares of Eastman Kodak at $23.85 per share less a(n) $735 commission. | ||
| Dec. | 31 | Per share fair values for stocks in the portfolio are: Black & Decker, $40.10; and Microsoft, $70.10. |
Problem 15-3A Part 1
Required:
1. Prepare journal entries to record these transactions and events and any year-end fair value adjustments to the portfolio of long-term available-for-sale 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.)
