Carlsville Company, which began operations in 2015, invests itsidle cash in trading securities. The following transactions arefrom its short-term investments in trading securities. 2015 Jan. 20Purchased 800 shares of Ford Motor Co. at $26 per share plus a $125commission. Feb. 9 Purchased 2,200 shares of Lucent at $44.25 pershare plus a $578 commission. Oct. 12 Purchased 750 shares ofZ-Seven at $7.50 per share plus a $200 commission. Dec. 31 Fairvalue of the short-term investments in trading securities is$130,000. 2016 Apr. 15 Sold 800 shares of Ford Motor Co. at $29 pershare less a $285 commission. July 5 Sold 750 shares of Z-Seven at$10.25 per share less a $102.50 commission. July 22 Purchased 1,600shares of Hunt Corp. at $30 per share plus a $444 commission. Aug.19 Purchased 1,800 shares of Donna Karan at $18.25 per share plus a$290 commission. Dec. 31 Fair value of the short-term investmentsin trading securities is $160,000. 2017 Feb. 27 Purchased 3,400shares of HCA at $34 per share plus a $420 commission. Mar. 3 Sold1,600 shares of Hunt at $25 per share less a $250 commission. June21 Sold 2,200 shares of Lucent at $42 per share less a $420commission. June 30 Purchased 1,200 shares of Black & Decker at$47.50 per share plus a $595 commission. Nov. 1 Sold 1,800 sharesof Donna Karan at $18.25 per share less a $309 commission. Dec. 31Fair value of the short-term investments in trading securities is$180,000. Required: 1. Prepare journal entries to record theseshort-term investment activities for the years shown. On December31 of each year, prepare the adjusting entry to record anynecessary fair value adjustment for the portfolio of tradingsecurities.(If no entry is required select No journal entryrequired in the first entry field. Do not round your intermediatecalculations.)
