Carlsville Company, which began operations in 2013, invests its idle cash in trading securities. The following transactions are from its short-term investments in its trading securities.

2013

Jan. 20 Purchased 1,000 shares of Ford Motor Co. at $27 per share plus a $120 commission.

Feb. 9 Purchased 2,500 shares of Lucent at $37 per share plus a $195 commission.

Oct. 12 Purchased 720 shares of Z-Seven at $8.10 per share plus a $95 commission.

2014

Apr. 15 Sold 1,000 shares of Ford Motor Co. at $30 per share less a $300 commission.

July 5 Sold 720 shares of Z-Seven at $10.75 per share less a $100 commission.

July 22 Purchased 2,000 shares of Hunt Corp. at $35 per share plus a $225 commission.

Aug. 19 Purchased 1,700 shares of Donna Karan at $44.80 per share plus a $110 commission.

2015

Feb. 27 Purchased 3,900 shares of HCA at $34 per share plus a $430 commission.

Mar. 3 Sold 2,000 shares of Hunt at $30 per share less a $125 commission.

June 21 Sold 2,500 shares of Lucent at $34.75 per share less a $37 commission.

June 30 Purchased 1,400 shares of Black & Decker at $47.50 per share plus a $600 commission.

Nov. 1 Sold 1,700 shares of Donna Karan at $44.80 per share less a $129 commission.

1.

Prepare journal entries to record these short-term investment activities for the years shown. (Ignore any year-end adjusting entries.)

2.

On December 31, 2015, prepare the adjusting entry to record any necessary fair value adjustment for the portfolio of trading securities when HCAs share price is $36 and Black & Deckers share price is $43.50. (Assume the Fair Value AdjustmentTrading account had an unadjusted balance of zero.) 3. Record the year-end adjusting entry for the securities portfolio as of December 31, 2015.