a. On March 22, purchased 720 shares of RIP Company stock at $19 per share plus a(n) $190 brokerage fee. These shares are categorized as trading securities. b. On September 1, received a $3 per share cash dividend on the RIP Company stock purchased in transaction a. c. On October 8, sold 360 shares of RIP Co. stock for $29 per share, less a(n) $180 brokerage fee. View transaction list View journal entry worksheet X No Transaction Debit Credit 1 a. General Journal Short-term investmentsTrading (RIP) Cash 13,870 13,870 2 b. 2,160 Cash Dividend revenue 2,160 3 c. 10,260 Cash Gain on sale of short-term investments Short-term investmentsTrading (RIP) 6,935 6,755 Exercise 15-3 Accounting for trading securities LO P1 Brooks Co. purchases various investments in trading securities at a cost of $58,000 on December 27, 2017. (This is its first and only purchase of such securities.) At December 31, 2017, these securities had a fair value of $68,000. 1. & 3. Prepare the December 31, 2017, year-end adjusting entry for the trading securities' portfolio and the January 3, 2018, entry when Brooks sells a portion of its trading securities that had originally cost $29,000) for $31,500. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 Dec 31, 2017 10,000 Fair value adjustment-Trading Unrealized gainIncome 10,000 2 Jan 03, 2018 31,500 Cash Gain on sale of short-term investments Short-term investmentsTrading 29,000 2,500 QS 15-5 Multiyear fair value adjustments to trading securities LO P1 Kitty Company began operations in 2016 and maintains short-term investments in trading securities. The year-end cost and fair values for its portfolio of these investments follow. Portfolio of Trading Securities December 31, 2016 December 31, 2017 December 31, 2018 December 31, 2019 Cost $ 87 67 85 106 Fair Value $ 60 96 119 80 Prepare journal entries to record each December 31 year-end fair value adjustment for these above securities. View transaction list View journal entry worksheet X Debit Credit No 1 Date General Journal Dec 31, 2016 Unrealized loss-Income Fair value adjustmentTrading (ST) 7 7 2 Dec 31, 2017 36 Fair value adjustmentTrading (ST) Unrealized gain-Income 36 3 Dec 31, 2018 Fair value adjustment-Trading (ST) Unrealized gainIncome QS 15-7 Available-for-sale securities LO P3 Journ Co. purchased short-term investments in available-for-sale securities at a cost of $69,000 on November 25, 2017. At December 31, 2017, these securities had a fair value of $64,100. This is the first and only time the company has purchased such securities. 1. & 3. Prepare the December 31, 2017 year-end adjusting entry for the securities' portfolio and the April 6, 2018, entry when Journ sells one-half of these securities for $35,880. View transaction list View journal entry worksheet No Date Credit Debit 4,900 1 Dec 31, 2016 General Journal Unrealized gain-Income Fair value adjustment-AFS (LT) 4,900 2 Apr 06, 2018 35,880 Cash Unrealized gain-Income 2,450 Exercise 15-4 Accounting for short-term held-to-maturity securities LO P2 Prepare journal entries to record the following transactions involving the short-term securities investments of Natura Co., all of which occurred during year 2017. a. On June 15, paid $108,000 cash to purchase Remedy's 90-day short-term debt securities ($108,000 principal), dated June 15, that pay 7% interest (categorized as held-to-maturity securities). b. On September 16, received a check from Remedy in payment of the principal and 90 days' interest on the debt securities purchased in transaction a. (Use 360 days in a year. Do not round your intermediate calculations.) View transaction list Journal entry worksheet On June 15, paid $108,000 cash to purchase Remedy's 90-day short-term debt securities ($108,000 principal), dated June 15, that pay 7% interest (categorized as held-to-maturity securities). Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View general journal Exercise 15-9 Fair value adjustment to available-for-sale securities LO P3 Prescrip Co. began operations in 2016. The cost and fair values for its long-term investments portfolio in available-for-sale securities are shown below. Prepare the December 31, 2017, adjusting entry to reflect any necessary fair value adjustment for these investments. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Portfolio of Available-for-Sale Securities Cost Fair Value December 31, 2016 $68,310 $62,162 December 31, 2017 73,947 78,384 View transaction list Journal entry worksheet Record the December 31, 2017 year-end adjusting entry for the securities portfolio, if any. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31 Record entry Clear entry View general journal