Rios Co. is a regional insurance company that began operations on January 1, 20Y2. The following selected transactions relate to investments acquired by Rios Co., which has a fiscal year ending on December 31:

20Y2

Feb. 1 Purchased 8,500 shares of Caldwell Inc. common stock at $52 per share plus a brokerage commission of $110. Caldwell has 108,000 shares of common stock outstanding.

May 1 Purchased securities of Holland Inc. as a trading investment for $125,000.

July 1 Sold 4,000 shares of Caldwell Inc. for $43 a share less a $100 brokerage commission.

31 Received an annual dividend of $0.70 per share on 4,500 shares of Caldwell Inc. stock.

Nov. 15 Sold the remaining shares of Caldwell Inc. for $50 per share less a $75 brokerage commission.

Dec. 31 The trading securities of Holland Inc. have a fair value on December 31 of $120,000.

20Y3

Apr. 1 Purchased securities of Fuller Inc. as a trading investment for $115,000.

Oct. 14 Sold securities of Fuller Inc. that cost $15,000 for $18,000.

Dec. 31 The fair values of the Holland Inc. and Fuller Inc. securities are as follows:

Issuing Company Cost Fair Value

Holland Inc. $125,000 $135,500

Fuller Inc. 100,000 118,000

Journalize the entries to record the preceding transactions, including any December 31 adjusting entries.

Prepare the Trading Investments section of the December 31, 20Y3 balance sheet for Rios Co.