Grass Security, which began operations in 2015, invests in long-term available-for-sale securities. Following is a series of transactions and events determining its long-term investment activity.

2015

Jan. 20 Purchased 1,000 shares of Johnson & Johnson at $20.50 per share plus a $240 commission.

Feb. 9 Purchased 1,200 shares of Sony at $46.20 per share plus a $225 commission.

June 12 Purchased 1,500 shares of Mattel at $27.00 per share plus an $195 commission.

Dec. 31 Per share fair values for stocks in the portfolio are Johnson & Johnson, $21.50; Mattel, $30.90; Sony, $38.

2016

Apr. 15 Sold 1,000 shares of Johnson & Johnson at $23.50 per share less a $525 commission.

July 5 Sold 1,500 shares of Mattel at $23.90 per share less a $235 commission.

July 22 Purchased 600 shares of Sara Lee at $ 22.50 per share plus a $480 commission.

Aug. 19 Purchased 900 shares of Eastman Kodak at $17 per share plus a $198 commission.

Dec. 31 Per share fair values for stocks in the portfolio are: Kodak, $19.25; Sara Lee, $20.00; Sony, $35.00.

2017

Feb. 27 Purchased 2,400 shares of Microsoft at $67.00 per share plus a $525 commission.

June 21 Sold 1,200 shares of Sony at $48.00 per share less a $880 commission.

June 30 Purchased 1,400 shares of Black & Decker at $36.00 per share plus a $435 commission.

Aug. 3 Sold 600 shares of Sara Lee at $16.25 per share less a $435 commission.

Nov. 1 Sold 900 shares of Eastman Kodak at $22.75 per share less a $625 commission.

Dec. 31 Per share fair values for stocks in the portfolio are: Black & Decker, $39.00; Microsoft, $69.00.

Required

1. Prepare journal entries to record these transactions and events and any year-end fair value adjustments to the portfolio of long- term available-for-sale securities.

2. Prepare a table that summarizes the

(a) Total cost,

(b) Total fair value adjustment,

(c) Total fair value of the portfolio of long-term available-for-sale securities at each year- end.

3. Prepare a table that summarizes

(a) The realized gains and losses

(b) The unrealized gains or losses for the portfolio of long-term available-for-sale securities at each year-end.