Problem 15-1A Recording transactions and fair value adjustments for trading securities LO P1 Carlsville Company,...
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Problem 15-1A Recording transactions and fair value adjustments for trading securities LO P1
Carlsville Company, which began operations in 2017, invests its idle cash in trading securities. The following transactions are from its short-term investments in trading securities. 2017
Jan.
20
Purchased 900 shares of Ford Motor Co. at $27 per share plus a $125 commission.
Feb.
9
Purchased 2,800 shares of Lucent at $37 per share plus a $195 commission.
Oct.
12
Purchased 740 shares of Z-Seven at $8.10 per share plus a $90 commission.
Dec.
31
Fair value of the short-term investments in trading securities is $139,100.
2018
Apr.
15
Sold 900 shares of Ford Motor Co. at $31 per share less a $300 commission.
July
5
Sold 740 shares of Z-Seven at $10.25 per share less a $95 commission.
July
22
Purchased 2,000 shares of Hunt Corp. at $36 per share plus a $225 commission.
Aug.
19
Purchased 1,700 shares of Donna Karan at $46.00 per share plus a $105 commission.
Dec.
31
Fair value of the short-term investments in trading securities is $250,545.
2019
Feb.
27
Purchased 3,900 shares of HCA at $36 per share plus a $440 commission.
Mar.
3
Sold 2,000 shares of Hunt at $31 per share less a $130 commission.
June
21
Sold 2,800 shares of Lucent at $34.75 per share less a $37 commission.
June
30
Purchased 1,400 shares of Black & Decker at $47.50 per share plus a $595 commission.
Nov.
1
Sold 1,700 shares of Donna Karan at $46.00 per share less a $124 commission.
Dec.
31
Fair value of the short-term investments in trading securities is $212,300.
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 for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations.)
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