In January $2025,$ the management of Stefan SE concludes that it has sufficient cash to permit some short$-$term investments in debt and equity securities$.$ All securities are considered to be trading securities $($financial assets at FVTPL$).$ During the year, the following transactions occurred.

Feb. $1$ Purchased $800$ ordinary shares of Superior for $32,000.$

Mar. $1$ Purchased $600$ ordinary shares of Pawlik for $21,000.$

Apr. $1$ Purchased $401,500,4\%$ Venice bonds for $60,000.$ Interest is payable semiannually on October $1$ and April $1.$

July $1$ Received a cash dividend of $1$ per share on the Superior ordinary shares.

Aug. $1$ Sold $200$ ordinary shares of Superior at $57$ per share.

Sept. $1$ Received a $2\mathrm{.}5$ per share cash dividend on the Pawlik ordinary shares.

Oct. $1$ Received the interest on the Venice bonds.

Oct. $1$ Sold the Venice bonds for $50,000$

At December $31,$ the fair value of the Superior ordinary shares was $55$ per share.

INSTRUCTIONS

a$.$ Journalize the transactions.

b$.$ Prepare the adjusting entry at December $31,2025,$ to report the investment securities at fair value.