Kirkland Company had no trading debt securities prior to this year. It had the following transactions this year involving trading debt securities.

Aug.		2		Purchased Verizon bonds for $48,000.
Sept.		7		Purchased Apple bonds for $73,000.
		12		Purchased Mastercard bonds for $58,000.
Oct.		21		Sold some of its Verizon bonds that had cost $3,900 for $4,000 cash.
		23		Sold some of its Apple bonds that had cost $53,000 for $53,400 cash.
Nov.		1		Purchased Walmart bonds for $78,000.
Dec.		10		Sold all of its Mastercard bonds for $56,000 cash.

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, $46,500; Apple, $41,000; and Walmart, $58,000. 3. Prepare the adjusting entry to record the year-end fair value adjustment for the portfolio of trading debt securities.

• Purchased Verizon bonds for $48,000.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Aug. 2

Prepare a table to compare the year-end cost and fair values of its trading debt securities. Year-end fair values: Verizon, $46,500; Apple, $41,000; and Walmart, $58,000.

Portfolio of Trading Securities	Cost	Fair Value	Unrealized Amount
Verizon bonds
Apple bonds
Walmart bonds
Total	$0	$0

• Record the year-end adjustment to fair value, if any.

Note: Enter debits before credits.

Date	Account Title	Debit	Credit
Dec. 1