15-1A Recording transactions and fair value adjustments for trading securities L.O. P1 [The following information applies to the questions displayed below.] Ryder Company, which began operations in 2011, invests its idle cash in trading securities. The following transactions are from its short-term investments in its trading securities. 2011 Jan. 20 Purchased 800 shares of Ford Motor Co. at $27 per share plus a $125 commission. Feb. 9 Purchased 3,000 shares of Lucent at $32 per share plus a $195 commission. Oct. 12 Purchased 780 shares of Z-Seven at $7.60 per share plus a $90 commission. 2012 Apr. 15 Sold 800 shares of Ford Motor Co. at $31 per share less a $300 commission. July 5 Sold 780 shares of Z-Seven at $11.25 per share less a $100 commission. July 22 Purchased 1,800 shares of Hunt Corp. at $32 per share plus a $230 commission. Aug. 19 Purchased 1,900 shares of Donna Karan at $14 per share plus a $100 commission. 2013 Feb. 27 Purchased 3,900 shares of HCA at $38 per share plus a $420 commission. Mar. 3 Sold 1,800 shares of Hunt at $27 per share less a $125 commission. June 21 Sold 3,000 shares of Lucent at $29.75 per share less a $37 commission. June 30 Purchased 1,300 shares of Black & Decker at $47.50 per share plus a $600 commission. Nov. 1 Sold 1,900 shares of Donna Karan at $23.00 per share less a $119 commission. Problem 15-1A Part 1 1. Prepare journal entries to record these short-term investment activities for the years shown. (Ignore any year-end adjusting entries.) (Input all amounts as positive values. Omit the "$" sign in your response.) Date General Journal Debit Credit Jan. 20, 2011 Feb. 9, 2011 Oct. 12, 2011 Apr. 15, 2012 July 5, 2012 July 22, 2012 Aug. 19, 2012 Feb. 27, 2013 Mar. 3, 2013 June 21, 2013 June 30, 2013 Nov. 1, 2013 Problem 15-1A Part 2 2. On December 31, 2013, prepare the adjusting entry to record any necessary fair value adjustment for the portfolio of trading securities when HCAs share price is $40 and Black & Deckers share price is $43.5. (Assume the Fair Value AdjustmentTrading account had an unadjusted balance of zero.) (Omit the "$" sign in your response.) Date General Journal Debit Credit Dec. 31, 2013