(APPENDIX) RECORDING AVAILABLE-FOR-SALE SECURITIES TRANSACTIONS INCLUDING A SALE AFTER ADJUSTMENT TO THE ALLOWANCE ACCOUNT Morton Products had no investment in available-for-sale securities at January 1, 2009.

During 2009, Morton engaged in the following marketable security transactions:

a. Purchased 400 shares of Sterling Company stock for $24 per share.

b. Purchased 600 shares of Burt Corporation stock for $32 per share.

c. Received a $2-per-share dividend on the Sterling stock.

d. Sold 250 shares of the Sterling stock for $27 per share.

At the end of 2009, the Sterling stock had a market value of $26 per share, and the Burt stock had a market value of $29 per share.

Required:

. Prepare journal entries for each of the four transactions assuming they are classified as available-for-sale securities.
. If necessary, prepare a journal entry to recognize the December 31, 2009, market values. What is the income statement effect of this entry?
. How would these investments be reported on the December 31, 2009, balance sheet?