60.1K

Verified Solution

Link Copied!

Carlsville Company, which began operations in 2015, invests its idle cash in trading securities. The following transactions are from its short-term investments in trading securities. 2015 Jan. 20 Feb. 9 Oct. 12 Dec. 31 Purchased 1,000 shares of Ford Motor Co. at $27 per share plus a $125 commission. Purchased 2,600 shares of Lucent at $35 per share plus a $190 commission. Purchased 700 shares of Z-Seven at $7.60 per share plus a $95 commission. Fair value of the short-term investments in trading securities is $127,400 2016 Apr. 15 Sold 1,000 shares of Ford Motor Co. at $30 per share less a $285 commission July 5 Sold 700 shares of Z-Seven at $10.75 per share less a $95 commission July 22 Purchased 1,800 shares of Hunt Corp. at $34 per share plus a $230 commission. Aug. 19 Purchased 2,000 shares of Donna Karan at $43.50 per share plus a $100 commission. Dec. 31 Fair value of the short-term investments in trading securities is $235,550 2017 Feb. 27 Purchased 4,000 shares of HCA at $31 per share plus a $440 commission Mar. 3 Sold 1,800 shares of Hunt at $29 per share less a $125 commission June 21 Sold 2,600 shares of Lucent at $32.75 per share less a $32 commission June 30 Purchased 1,300 shares of Black & Decker at $47.50 per share plus a $595 commission. Nov. 1 Sold 2,000 shares of Donna Karan at $43.50 per share less a $119 commission. Dec. 31 Fair value of the short-term investments in trading securities is $192,500 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 select No journal entry required in the first entry field. Do not round your intermediate calculations.)

Answer & Explanation Solved by verified expert

See Answer