Problem $15-1$A $($Algo$)$ Recording and adjusting trading debt securities LO P$1$

Kirkland Company had no trading debt securities prior to this year. It had the following transactions this year involving trading debt securities$.$

August $2$ Purchased Verizon bonds for $$30,000.$

September $7$ Purchased Apple bonds for $$55,000.$

September $12$ Purchased Mastercard bonds for $$40,000.$

October $21$ Sold some of its Verizon bonds that had cost $$3,000$ for $$3,100$ cash.

October $23$ sold some of its Apple bonds that had cost $$35,000$ for $$35,400$ cash.

November $1$ Purchased Walmart bonds for $$60,000.$

December $10$ Sold all of its Mastercard bonds for $$38,000$ cash.

Required:

Prepare journal entries to record these transactions.

Prepare a table to compare the year$-$end cost and fair values of its trading debt securities$.$ Year$-$end fair values: Verizon, $$28,500$; Apple, $$32,000$; and Walmart, $$49,000.$

Prepare the adjusting entry to record the year$-$end fair value adjustment for the portfolio of trading debt securities$.$

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