Myers & Associates reports the following information on its December 31, 2013 balance sheet:

Trading securities (at cost) $225,850

Less: Market adjustment trading securities 2,260 $223,590

Security Cost Fair Value

200 shares Conway Co common $25,450 $24,300

$80,000 US treasury 7% bonds 79,650 77,400

$120,000 US Treasury 7 % bonds 120,750 121,890

Total $225,850 $223,590

Interest dates on the Treasury bonds are January 1 and July 1. Myers & Associates uses the revenue approach to record the purchase of bonds with accrued interest. During 2014 and 2015, Myers & Associates completed the following transaction related to trading securities:

2014

Jan 1 Received semiannual interest on US Treasury bonds. Assume that the appropriate adjusting

entry was made on Dec 31, 2013.

Apr 1 Sold $60,000 of the 7 % US Treasury bonds as 102 plus accrued interest. Brokerage fees paid were $200.

May 21 Received dividend of $0.25 per share on the Conway Co. common stock. The dividend had not been recorded on the declaration date.

Jul 1 Received semiannual interest on US Treasury and then sold the 7% bonds at 97 . Brokerage fees paid were $250.

Aug 15 Purchased 100 shares of Nieman Inc. common stock at $116 share

Nov 1 Purchased $50,000 of the 8% US Treasury bonds at 101 plus accrued interest. Interest dates are January 1 and July 1.

Dec 31 Market prices of securities were Conway Co common, $100; 7 % US Treasury bond, 101 ; 8% US treasury bonds, 101; Nieman Inc. common, $116.75.

2015

Jan 2 Recorded receipt of semiannual interest on the US treasury bonds

Feb 1 Sold the remaining 7 % US Treasury bonds at 101 plus accrued interest. Brokerage fees paid were $300.

Instructions:

Prepare journal entries for the preceding transactions and to accrue interest on December 31, 2014.Ignore any amortization of premium or discount on US Treasury bonds.Give computations in support of your entries.

Show how trading securities would be presented on the December 31, 2014 balance sheet.