Debt investment transactions, available-for-sale valuation

Rios Co. is a regional insurance company that began operations on January 1, 2021. The following selected transactions relate to investments acquired by Rios Co., which has a fiscal year ending on December 31:

2021

Feb. 1 Purchased 7,500 shares of Caldwell, Inc. common stock at $50 per share plus a brokerage commission of $75. Caldwell has 100,000 shares of common stock outstanding.

May 1 Purchased securities of Holland, Inc. as a trading investment for $126,000.

July 1 Sold 4,500 shares of Caldwell, Inc. for $46 per share less a $110 brokerage commission.

July 31 Received an annual dividend of $0.50 per share on 3,000 shares of Caldwell, Inc. stock.

Nov. 15 Sold the remaining shares of Caldwell, Inc. for $51 per share less a $90 brokerage commission.

Dec. 31 The trading securities of Holland, Inc. have a fair value on December 31 for $120,000.

2022

Apr. 1 Purchased securities of Fuller, Inc. as a trading investment for $125,000.

Oct. 14 Sold securities of Fuller, Inc. that cost $25,000 for $30,000.

Dec. 31 The fair values of the Holland, Inc. and Fuller, Inc. securities are as follows

Issuing Company Cost Fair Value

Holland, Inc. $126,000 $132,500

Fuller, Inc. 100,000 115,600

1. Journalize the entries to record the preceding transactions, including any December 31 adjusting entries.