Kirkland Company had no trading debt securities prior to this year. It had the following transactions this year involving trading debt securities. Aug. Sept. Oct. 2 Purchased Verizon bonds for $20,000. 7 Purchased Apple bonds for $45,000. 12 Purchased Mastercard bonds for $30,000. 21 Sold some of its Verizon bonds that had cost $2,500 for $2,600 cash. 23 Sold some of its Apple bonds that had cost $25,000 for $25,400 cash. 1 Purchased Walmart bonds for $50,000. 10 Sold all of its Mastercard bonds for $28,000 cash. Nov. Dec. Required 1. Prepare journal entries to record these transactions. 2. Prepare a table to compare the year-end cost and fair values of its trading debt securities. Year-end fair values: Verizon, $18,500; Apple, $27,000; and Walmart, $44,000. 3. Prepare the adjusting entry to record the year-end fair value adjustment for the portfolio of trading debt securities. No Date Account Title Debit Credit 1 Dec. 1 Fair value adjustment - Trading Unrealized gain - Equity Prepare a table to compare the year-end cost and fair values of its trading debt securities. Year-end fair values: Verizon, $18,500; Apple, $27,000; and Walmart, $44,000. Portfolio of Trading Securities Cost Fair Value Unrealized Amount Verizon bonds $ 18,500 Apple bonds 27,000 Walmart bonds 50,000 44,000 Total $ 50,000 $ 89,500 Unrealized gain