04 : Dextron Co. made the following investments in marketable securities in 1986 ; Martin Inc. , 1,400 shares @ 45.75 $ 64,050 39,375 Smith Corp. , 1,750 shares @ 22.5 Walker Bros. first - mortgage 8 % bonds , 105 $ 1000 bonds at par . 105,000 $ 208,425 Smith Corp. shares were sold at the end of 1988 for $ 29,750 . The market values of the securities at the end of 1986 , 1987 , and 1988 were as follows : 1986 1987 1988 Martin Inc. $ 55,650 $ 60,375 $ 68,250 35,700 Smith Corp. 30,100 Walker Bros 108.500 110.250 105,350 Required : Prepare the necessary entries for 1986 , 1987 , and 1988 for the valuation and the sale of securities , and show how the securities would be reported on the balance sheets prepared at the end of 1986 , 1987 , and 1988