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Debt investment transactions, available-for-sale valuation

Rios Co. is a regional insurance company that began operations on January 1, 2021. The following selected transactions relate to investments acquired by Rios Co., which has a fiscal year ending on December 31:

2021

Feb. 1 Purchased 7,500 shares of Caldwell, Inc. common stock at $50 per share plus a brokerage commission of $75. Caldwell has 100,000 shares of common stock outstanding.

May 1 Purchased securities of Holland, Inc. as a trading investment for $126,000.

July 1 Sold 4,500 shares of Caldwell, Inc. for $46 per share less a $110 brokerage commission.

July 31 Received an annual dividend of $0.50 per share on 3,000 shares of Caldwell, Inc. stock.

Nov. 15 Sold the remaining shares of Caldwell, Inc. for $51 per share less a $90 brokerage commission.

Dec. 31 The trading securities of Holland, Inc. have a fair value on December 31 for $120,000.

2022

Apr. 1 Purchased securities of Fuller, Inc. as a trading investment for $125,000.

Oct. 14 Sold securities of Fuller, Inc. that cost $25,000 for $30,000.

Dec. 31 The fair values of the Holland, Inc. and Fuller, Inc. securities are as follows:

WHAT IS THE ANSWER FOR THE LAST ONE

2021 Feb. 1 375,075 Investments - Caldwell, Inc. Stock Cash Correct Correct 375,075 May 1 126,000 Trading Investments - Holland, Inc. Cash Correct Correct 126,000 July 1 Cash Loss on Sale of Investments. Investments - Caldwell, Inc. Stock Correct Correct Correct 206,890 18,155 225,045 31 1,500 Cash Dividend Revenue Correct Correct 1,500 Nov. 15 152,910 Cash Gain on Sale of Investments Investments - Caldwell, Inc. Stock Correct Correct Correct 2,880 150,030 Dec. 31 6,000 Unrealized Loss on Trading Investments Valuation Allowance on Trading Investments Correct Correct 6,000 2022 Apr. 1 125,000 Trading Investments - Fuller, Inc. Cash Correct Correct 125,000 Oct. 14 30,000 Cash Gain on Sale of Investments Trading Investments - Fuller, Inc. Correct Correct Correct 5,000 25,000 Dec. 31 Valuation Allowance on Trading Investments Unrealized Gain on Trading Investments Correct Correct 2021 Feb. 1 375,075 Investments - Caldwell, Inc. Stock Cash Correct Correct 375,075 May 1 126,000 Trading Investments - Holland, Inc. Cash Correct Correct 126,000 July 1 Cash Loss on Sale of Investments. Investments - Caldwell, Inc. Stock Correct Correct Correct 206,890 18,155 225,045 31 1,500 Cash Dividend Revenue Correct Correct 1,500 Nov. 15 152,910 Cash Gain on Sale of Investments Investments - Caldwell, Inc. Stock Correct Correct Correct 2,880 150,030 Dec. 31 6,000 Unrealized Loss on Trading Investments Valuation Allowance on Trading Investments Correct Correct 6,000 2022 Apr. 1 125,000 Trading Investments - Fuller, Inc. Cash Correct Correct 125,000 Oct. 14 30,000 Cash Gain on Sale of Investments Trading Investments - Fuller, Inc. Correct Correct Correct 5,000 25,000 Dec. 31 Valuation Allowance on Trading Investments Unrealized Gain on Trading Investments Correct Correct

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