Problem 15 1A Recording transactions and fair value adjustments for trading securities LO P1 Carlsville Company, which began operations in 2017, invests its idle cash in trading securities The following transactions are from its short term investments in trading securities 2017 Jan 20 Purchased 800 shares of Ford Motor Co at $27 per share plus a $125 commission Feb 9 Purchased 2,300 shares of Lucent at $37 per share plus a $195 commission Oct 12 Purchased 760 shares of Z Seven at $7 60 per share plus a $100 commission Dec 31 Fair value of the short term investments in trading securities is $116,200 2018 Apr 15 Sold 800 shares of Ford Motor Co at $31 per share less a $295 commission July 5 Sold 760 shares of Z Seven at $11 00 per share less a $95 commission July 22 Purchased 2,000 shares of Hunt Corp at $37 per share plus a $230 commission Aug 19 Purchased 1,600 shares of Donna Karan at $46 20 per share plus a $100 commission Dec 31 Fair value of the short term investments in trading securities is $228,725 2019 Feb 27 Purchased 3,900 shares of HCA at $37 per share plus a $430 commission Mar 3 Sold 2,000 shares of Hunt at $32 per share less a $130 commission June 21 Sold 2,300 shares of Lucent at $34 75 per share less a $37 commission June 30 Purchased 1,400 shares of Black Decker at $47 50 per share plus a $595 commission Nov 1 Sold 1,600 shares of Donna Karan at $46 20 per share less a $119 commission Dec 31 Fair value of the short term investments in trading securities is $216,000 Required Prepare journal entries to record these short term investment activities for the years shown On December 31 of each year, prepare the adjusting entry to record any necessary fair value adjustment for the portfolio of trading securities (If no entry is required for a transaction event, select No journal entry required in the first account field Do not round your intermediate calculations ) Prepare journal entries to record these short term investment activities for the years shown On December 31 of each year, prepare the adjusting entry to record any necessary fair value adjustment for the portfolio of trading securities View transaction list Journal entry worksheet

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 22, 2024

Problem 15-1A Recording transactions and fair value adjustments for trading securities LO P1 Carlsville Company, which began operations in 2017, invests its idle cash in

Problem 15-1A Recording transactions and fair value adjustments for trading securities LO P1

Carlsville Company, which began operations in 2017, invests its idle cash in trading securities. The following transactions are from its short-term investments in trading securities. 2017

Jan.	20	Purchased 800 shares of Ford Motor Co. at $27 per share plus a $125 commission.
Feb.	9	Purchased 2,300 shares of Lucent at $37 per share plus a $195 commission.
Oct.	12	Purchased 760 shares of Z-Seven at $7.60 per share plus a $100 commission.
Dec.	31	Fair value of the short-term investments in trading securities is $116,200.

2018

Apr.	15	Sold 800 shares of Ford Motor Co. at $31 per share less a $295 commission.
July	5	Sold 760 shares of Z-Seven at $11.00 per share less a $95 commission.
July	22	Purchased 2,000 shares of Hunt Corp. at $37 per share plus a $230 commission.
Aug.	19	Purchased 1,600 shares of Donna Karan at $46.20 per share plus a $100 commission.
Dec.	31	Fair value of the short-term investments in trading securities is $228,725.

2019

Feb.	27	Purchased 3,900 shares of HCA at $37 per share plus a $430 commission.
Mar.	3	Sold 2,000 shares of Hunt at $32 per share less a $130 commission.
June	21	Sold 2,300 shares of Lucent at $34.75 per share less a $37 commission.
June	30	Purchased 1,400 shares of Black & Decker at $47.50 per share plus a $595 commission.
Nov.	1	Sold 1,600 shares of Donna Karan at $46.20 per share less a $119 commission.
Dec.	31	Fair value of the short-term investments in trading securities is $216,000.

Required: Prepare journal entries to record these short-term investment activities for the years shown. On December 31 of each year, prepare the adjusting entry to record any necessary fair value adjustment for the portfolio of trading securities. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations.)

Prepare journal entries to record these short-term investment activities for the years shown. On December 31 of each year, prepare the adjusting entry to record any necessary fair value adjustment for the portfolio of trading securities. View transaction list Journal entry worksheet