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 $20,000.
Sept.		7		Purchased Apple bonds for $45,000.
		12		Purchased Mastercard bonds for $30,000.
Oct.		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.
Nov.		1		Purchased Walmart bonds for $50,000.
Dec.		10		Sold all of its Mastercard bonds for $28,000 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, $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.

Required 1 Required 2 Required 3 Prepare a table to compare the year-end cost and fair values of its trading debt securities. Ye $18,500; Apple, $27,000; and Walmart, $44,000. Portfolio of Trading Securities Cost Fair Value Unrealized Amount Verizon bonds Apple bonds Walmart bonds Total $ 0 $ 0 Required 1 Required 3 > Required 1 Required 2 Required 3 Prepare the adjusting entry to record the year-end fair value adjustment for the portfolio of trading debt securities. View transaction list Journal entry worksheet