ACCOUNTING FOR SHORT-TERM INVESTMENTS. Maxwell Company engaged in the following transactions involving short-term investments:

a) Purchased 200 shares of Bartco stock for $12,800.

b) Received a $1.60-per-share dividend on the Bartco stock.

c) Sold 40 shares of the Bartco stock for $61 per share.

d) Purchased 380 shares of Newton stock for $20,900.

e) Received a dividend of $1.00 per share on the Newton stock.

At December 31, the Bartco stock has a market value of $60 per share, and the Newton stock has a market value of $59 per share. The preadjustment balance of the allowance to adjust short-term investments to market is a credit of $510.

REQUIRED:
1. Prepare entries for Maxwell’s journal to record these transactions.
2. Calculate the market value of Maxwell’s short-term investment portfolio at Decem-
’ ber 31.
3. Prepare the necessary journal entry at December 31 to adjust the portfolio to market.