Instructions:

Prepare general journal entries for the following, assuming the company does not recognize and report dividends and other components of investment gains and losses separately:

The December 31, 2019 adjusting entry

The sale of the David Jones Inc. shares

The purchase of Oberto Ltd. shares

The December 31, 2020 adjusting entries

Martinez Corporation, a Canadian-based international company that follows IFRS, has the following securities in its portfolio of investments acquired for trading purposes and accounted for using the FV-NI method on December 31, 2019: Investments 2,000 shares of David Jones Inc., common 4,300 shares of Hearn Corp., common 420 shares of Alessandro Inc., preferred Carrying Amount (before adjustment) $99,000 150,500 67,200 $316,700 Fair Value $94.900 146,400 69,700 $311,000 In 2020, Martinez completed the following securities transactions: Mar. 1 Sold the 2,000 shares of David Jones Inc. common at $41 per share, less fees of $500. Apr. 1 Bought 900 shares of Oberto Ltd. common at $79 per share, plus fees of $1,300. Martinez Corporation's portfolio of trading securities appeared as follows on December 31, 2020: Investments 4,300 shares of Hearn Corp., common 900 shares of Oberto Ltd., common 420 shares of Alessandro Inc., preferred Original Cost $150,500 71,100 67,200 $288,800 Fair Value $146,400 68,900 64,700 $280,000 Assume that the company does not recognize and report dividends and other components of investment gains and losses separately