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

August $2$ Purchased Verizon bonds for $$18,000.$

September $7$ Purchased Apple bonds for $$43,000.$

September $12$ Purchased Mastercard bonds for $$28,{000}^{\text{'}}.$

October $21$ Sold some of its Verizon bonds that had cost $$2,400$ for $$2,500$ cash.

October $23$ Sold some of its Apple bonds that had cost $$23,000$ for $$23,400$ cash.

November $1$ Purchased Walmart bonds for $$48,000.$

December $10$ Sold all of its Mastercard bonds for $$26,000$ cash.

Required:

Prepare journal entries to record these transactions.

Prepare a table to compare the year$-$end cost and fair values of its trading debt securities$.$ Year$-$end fair values: Verizon, $$16,500$; Apple, $$26,000$; and Walmart, $$43,000.$

Prepare the adjusting entry to record the year$-$end fair value adjustment for the portfolio of trading debt securities$.$

Complete this question by entering your answers in the tabs below.

Prepare journal entries to record these transactions.

Journal entry worksheet

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