P16-5B The following are in Madisen Company's portfolio of long-term available-for-sale securities at December 31,2008. Journalize stock invesnnert transactions and show statement presentation (SO 3, 5, 6) Cost 500 shares of Bonds Corporation common stock $26,000 700 shares of Mays Corporation common stock 42.000 600 shares of Dukakis Corporation preferred stock 16,800 On December 31, the total cost of the portfolio equaled total fair value. Madisen Company had the following transactions related to the securities during 2009. Jan. 7 Sold 500 shares of Bonds Corporation comnion stock at $56 per share, less brokerage fces of $700. 10 Purchased 200 shares, $70 par value cominon stock of Petengill Corporation at $78 per share, plus brokerage fees of $240. 26 Received a cash dividend of $1.15 per share on Mays Corporation common stock. Feb. 2 Received cash dividends of $0.40 per sbare on Dukakis Corporation preferred stock. 10 Sold all 600 shares of Dukakis Corporation preferred stock at $26 per share less bro- kerage fees of $180. July 1 Received a cash dividend of $1.00 per share on Mays Corporation common stock. Sept. 1 Purchased an additional 600 shares of the $70 par value common stock of Petengill Corporation at $75 per share, plus brokerage fees of $900. Dec 15 Received a cash dividend of $1.50 per share on Petengill Corporation common stock A1 December 31, 2009, the fair values of the securities were: Mays Corporation common stock $63 per share Petengill Corporation common stock $72 per share Madisen uses separate account titles for each investment, such as Investment in Mays Corporation Common Stock. Instructions (a) Prepare journal entries to record the transactions. (1) Post to the investment accounts. (Use T accounts.) (c) Prepare the adjusting entry at December 31, 2009, to report the portfolio at fair value. (d) Show the balance sheet presentation at December 31, 2009. (a) Loss on sale $1,380 (c) Unrealized loss $2,040