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 $16,000. Sept. 7 Purchased Apple bonds for $41,000. 12 Purchased Mastercard bonds for $26,000. Oct. 21 Sold some of its Verizon bonds that had cost $2,300 for $2,400 cash. 23 Sold some of its Apple bonds that had cost $21,000 for $21,400 cash. Nov. 1 Purchased Walmart bonds for $46,000. Dec. 10 Sold all of its Mastercard bonds for $24,000 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, $14,500; Apple, $25,000; and Walmart, $42,000. 3. Prepare the adjusting entry to record the year-end fair value adjustment for the portfolio of trading debt securities. X: 1 Purchased Verizon bonds for $16,000. 2 Purchased Apple bonds for $41,000. 3 Purchased Mastercard bonds for $26,000. 4 Sold some of its Verizon bonds that had cost $2,300 for $2,400 cash. 5 Sold some of its Apple bonds that had cost $21,000 for $21,400 cash. 6 Purchased Walmart bonds for $46,000. 7 Record sale of Mastercard trading securities with a $26,000 cost in return for $24,000 cash. Prepare a table to compare the year-end cost and fair values of its trading debt securities. Year-end fair values: Verizon, $14,500; Apple, $25,000; and Walmart, $42,000. Cost Fair Value Unrealized Amount Portfolio of Trading Securities Verizon bonds Apple bonds Walmart bonds Total Record the year-end adjustment to fair value, if any. Note: Enter debits before credits. Date Account Title Debit Credit Dec. 1