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Kirkland Company had no trading debt securities prior to this year. It had the following...

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Accounting

Kirkland Company had no trading debt securities prior to this year. It had the following transactions this year involving trading debt securities.

Aug. 2 Purchased Verizon bonds for $12,000.
Sept. 7 Purchased Apple bonds for $37,000.
12 Purchased Mastercard bonds for $22,000.
Oct. 21 Sold some of its Verizon bonds that had cost $2,100 for $2,200 cash.
23 Sold some of its Apple bonds that had cost $17,000 for $17,400 cash.
Nov. 1 Purchased Walmart bonds for $42,000.
Dec. 10 Sold all of its Mastercard bonds for $20,000 cash.

Required 1. Prepare journal entries to record these transactions. 2. Prepare a table to compare the year-end cost and fair values of its trading debt securities. Year-end fair values: Verizon, $10,500; Apple, $23,000; and Walmart, $40,000. 3. Prepare the adjusting entry to record the year-end fair value adjustment for the portfolio of trading debt securities.

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