Berkshire Hathaway The following note comes from the 2005 annual report of Berkshire Hathaway:

(6) Investments in equity securities Data with respect to investments in equity securities are shown below.

Amounts are in millions.

Berkshire Hathaway also discloses that it classifies each of these investments as an availablefor-
sale security.
1. All securities included in the tables in Berkshire Hathaway’s Note 6 are classified as available-for-sale. Make all journal entries that were required in 2005 to account for Berkshire Hathaway’s investments in:

a. The Coca-Cola Company.

b. Other equity securities.
2. Did the performance of Berkshire Hathaway’s portfolio of equity securities have any bright spots in 2005?
3. How has Berkshire Hathaway’s portfolio of equity securities performed over time?

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December 31, 2005 Common stock of: Cost Unrealized Gains Fair Value American Express Company $ 1,287 $ 6,515 $ 7,802 The Coca-Cola Company 1,299 6,763 8,062 The Procter & Gamble Company* 5,963 (175) 5,788 Wells Fargo & Company 2,754 3,221 5,975 Other equity securities 10,036 9,058 19,094 $21,339 $25,382 $46,721 Cost Unrealized Gains Fair Value December 31, 2004 Common stock of: American Express Company The Coca-Cola Company $ 1,470 $ 7,076 $ 8,546 1,299 7,029 8,328 The Gillette Company* 600 3,699 4,299 Wells Fargo & Company 463 3,045 3,508 Other equity securities 5,505 7,531 13,036 $ 9,337 $28,380 $37,717 *The Gillette Company was acquired by The Procter & Gamble Company during 2005.