The following are in Sanders Company's portfolio of long-term available-for-sale securities at December 31, 2006.

On December 31, the total cost of the portfolio equaled total fair value. Sanders Company had the following transactions related to the securities during 2007.
Jan.
Feb.
7 Sold 500 shares of Bonds Corporation common stock at $58 per share, less brokerage fees of $700.
10 Purchased 200 shares of the $70 par value common stock of Schilling Corporation at $78 per share, plus brokerage fees of $240.
26 Received a cash dividend of $1.15 per share on Ruth Corporation common stock.
2 Received cash dividends of $0.40 per share on Edmonds Corporation preferred stock.
10 Sold all 600 shares of Edmonds Corporation preferred stock at $25 per share less brokerage fees of $180.
Received a cash dividend of $1.00 per share on Ruth Corporation common stock.
Purchased an additional 800 shares of the $70 par value common stock of Schilling Corporation at $75 per share, plus brokerage fees of $900.
Received a cash dividend of $1.50 per share on Schilling Corporation common stock.
July Sept.
Dec.
At December 31, 2007, the fair values of the securities were:

Sanders uses separate account titles for each investment, such as Investment in Ruth Corporation Common Stock.
Journalize stock investment transactions and show statement presentation.
(SO 3, 5, 6)
Instructions

(a) Prepare journal entries to record the transactions.

(b) Post to the investment accounts. (Use T accounts.)

(c) Prepare the adjusting entry at December 31. 2007, to report the portfolio at fair value.

(d) Show the balance sheet presentation at December 31, 2007.

(a) Loss on sale $1,980

(c) Unrealized loss $2,640

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500 shares of Bonds Corporation common stock 700 shares of Ruth Corporation common stock 600 shares of Edmonds Corporation preferred stock Cost $26,000 42,000 16,800