(Trading and Available-for-Sale Securities Entries) Loxley Company has the following portfolio of investment securities at September 30, 2007, its last reporting date.

On October 10, 2007, the Fogelberg shares were sold at a price of $54 per share. In addition, 3,000 shares of Los Tigres common stock were acquired at $59.50 per share on November 2, 2007. The December 31, 2007, fair values were: Petra $96,000, Los Tigres $132,000, and the Weisberg common $193,000. All the securities are classified as trading.
Instructions

(a) Prepare the journal entries to record the sale, purchase, and adjusting entries related to the trading securities in the last quarter of 2007.

(b) How would the entries in part

(a) change if the securities were classified as available-for-sale?

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Trading Securities Dan Fogelberg, Inc. common (5,000 shares) Petra, Inc. preferred (3,500 shares) Tim Weisberg Corp. common (1,000 shares) Cost Fair Value $225,000 $200,000 133,000 140,000 180,000 179,000