On December 5, Taylor Inc., purchased 2000 shares of Company A at $60.5 per

share, and 1000 shares of Company B at $70.75 per share. Broker charged

commission at $25 for shares of Company A and S20 for shares of Company B. On

December 10, Taylor Inc., sold 500 shares of Company A for a total of $29000 (less

$30 as brokerage commission) and 400 shares of Company B for a total of $30000

(less $25 as brokerage commission).

Required:

1. Prepare journal entries relating to purchase and sale of shares of Company

A and Company B.

2. Record journal entries relating to the necessary adjustment of unrealized

holding gain or unrealized holding loss on sale of shares of Company A and

Company B on December 31, assuming that the market value of remaining

shares of Company A is $105000 and Company B is $37000.

Note: Prepare separate entries for purchase and sale of shares and unrealized

holding gain or loss of Company A and Company B.