In January 2014, the management of Weast Company concluded that it had sufficient cash to purchase some short-term investments in debt and stock securities. During the year, the following transactions occurred.

|Feb. 1 |Purchased 1,600 shares of ALF common stock for $75,200.

|Mar. 1 |Purchased 780 shares of LNC common stock for $28,450.

|Apr. 1 |Purchased 30 $1,300, 7% CRT bonds for $39,000. Interest is payable semiannually on April 1 and October 1.

|July 1| Received a cash dividend of $0.80 per share on the ALF common stock.

|Aug. 1 |Sold 600 shares of ALF common stock at $46 per share.

|Sept. 1| Received $2 per share cash dividend on the LNC common stock.

|Oct. 1| Received the semiannual interest on the CRT bonds.

|Oct. 1| Sold the CRT bonds for $44,500. On December 31, the fair values of the ALF and LNC common stocks were $43 and $30 per share, respectively.

a) Journalize the transactions and post to the accounts Debt Investments and Stock Investments.

b) Prepare the adjusting entry on December 31, 2014, to report the investments at fair value. All securities are considered to be trading securities.

Do not copy from Chegg and give complete answer with explanation