Western Capital Inc. is an investment company that began operations on January 1, 2015. The following transactions relate to held-for-trading securities acquired by Western Capital Inc., which has a fiscal year ending on December 31:
2015
Feb. 3. Purchased 2,500 shares of Titan Inc. as a held-for-trading investment at $35 per share plus a brokerage commission of $500.
Mar. 12. Purchased 1,200 shares of Quick Tyme Inc. as a held-for-trading investment at $14 per share plus a brokerage commission of $240.
May. 15. Sold 600 shares of Titan Inc. for $36 per share less an $80 brokerage commission
Jun. 12. Received an annual dividend of $0.12 per share on Titan Inc. shares.
Dec. 31. The held-for-trading investments were adjusted to fair values of $15 and $39 per share for Quick Tyme Inc. and Titan Inc., respectively.
2016
Apr. 9. Purchased 1,100 shares of Aspire Inc. as a held-for-trading investment at $41 per share plus a $165 brokerage commission.
Jun. 15. Received an annual dividend of $0.15 per share on Titan Inc. shares.
Aug. 20. Sold 200 shares of Aspire Inc. for $35 per share less a $60 brokerage commission.
Dec. 31. The held-for-trading investments were adjusted to fair value using the following fair values per share for the held-for-trading investments:
Aspire Inc. ......................... $31
Quick Tyme Inc. .................. 16
Titan Inc. ............................ 37
Instructions
1. Journalize the entries to record these transactions.
2. Prepare the investment-related current asset statement of financial position disclosures for Western Capital Inc. on December 31, 2016.
3. How are unrealized holding gains or losses on held-for-trading investments disclosed in the financial statements of Western Capital Inc.?