Galaxy Company completes the following transactions during the current year. May 9 Purchases 400 shares of X&O

Question:

Galaxy Company completes the following transactions during the current year.
May 9 Purchases 400 shares of X&O stock as a short-term investment in available-for-sale securities at a cost of $50 per share plus $400 in fees.
June 2 Sells 200 shares of its investment in X&O stock at $56 per share. The broker’s commission on this sale is $180.
Dec. 31 The closing market price (fair value) of the X&O stock is $46 per share.
Prepare the May 9 and June 2 journal entries and the December 31 adjusting entry. This is the first and only time the company purchased such securities.

Broker
A broker is someone or something that acts as an intermediary third party, managing transactions between two other entities. A broker is a person or company authorized to buy and sell stocks or other investments. They are the ones responsible for...