Question 11

Cal Digit has the following Investments categorized as Available-for-Sale Securities. The Portfolio of these securities are listed below:

Security	Cost	Fair Value on 12/31/14
100 shares of JON Company Common Stock	$5,000	$4,900
300 shares of KLM Company Common Stock	$24,000	$22,000
500 shares of XYZ Company Preferred Stock	$24,000	$22,900
$15,000 face value of Air Delta Company Bonds	$15,000	$13,500
Totals	$68,000	$63,300

Security	Cost	Fair Value on 12/31/15
100 shares of JON Company Common Stock	$5,000	$6,100
300 shares of KLM Company Common Stock	$24,000	$22,700
500 shares of XYZ Company Preferred Stock	$24,000	$23,200
$15,000 face value of Air Delta Company Bonds	$15,000	$14,000
Totals	$68,000	$66,000

On July 31, 2016 Cal Digit transfers the JON Company Common Stock securities into the trading category when the fair value was $63 per share as quoted on the New York Stock Exchange. (The shares were not sold but there was a change in INTENT)

This is considered a transfer in categories (look on page 974 of your textbook). I did not work a problem like this in class however you are responsible for it.

Prepare the journal entry or journal entries for the JON Company Common Stock on July 31, 2016.