While reviewing the March 31, 2022, balance sheet of Business Solutions, Santana Rey notes that the business has built a large cash balance of $68,057. Its most recent bank money market statement shows that the funds are earning an annualized return of 0.75%. S. Rey decides to make several investments with the desire to earn a higher return on the idle cash balance. Accordingly, in April 2022 , Business Solutions makes the following investments in trading securities. April 16 Purchases Johnson \& Johnson bonds for $10,000. April 30 Purchases Starbucks notes for $4,400. On June 30,2022 , the fair value of the Johnson \& Johnson bonds is $12,000 and the Starbucks notes is $3,800. Required: 1. Prepare journal entries to record the April purchases of trading securities by Business Solutions. 2. On June 30, 2022, prepare the adjusting entry to record any necessary fair value adjustment to its portfolio of trading securities. Complete this question by entering your answers in the tabs below. Prepare journal entries to record the April purchases of trading securities by Business Solutions. Journal entry worksheet Record the Debt investment in bonds of Johnson \& Johnson for $10,000. Note: Enter debits before credits. While reviewing the March 31,2022 , balance sheet of Business Solutions, Santana Rey notes that the business has built a large cash balance of $68,057. Its most recent bank money market statement shows that the funds are earning an annualized return of 0.75%. S. Rey decides to make several investments with the desire to earn a higher return on the idle cash balance. Accordingly, in April 2022 , Business Solutions makes the following investments in trading securities. April 16 Purchases Johnson \& Johnson bonds for \$10,000. April 30 Purchases Starbucks notes for $4,400 On June 30,2022 , the fair value of the Johnson \& Johnson bonds is $12,000 and the Starbucks notes is $3,800. Required: 1. Prepare journal entries to record the April purchases of trading securities by Business Solutions. 2. On June 30, 2022, prepare the adjusting entry to record any necessary fair value adjustment to its portfolio of trading securities. Complete this question by entering your answers in the tabs below. Prepare journal entries to record the April purchases of trading securities by Business Solutions. Journal entry worksheet Record the Debt investment in notes of Starbucks for $4,400. Note: Enter debits before credits. While reviewing the March 31,2022 , balance sheet of Business Solutions, Santana Rey notes that the business has built a large cash balance of $68,057. Its most recent bank money market statement shows that the funds are earning an annualized return of 0.75%. S. Rey decides to make several investments with the desire to earn a higher return on the idle cash balance. Accordingly, in April 2022 , Business Solutions makes the following investments in trading securities. April 16 Purchases Johnson \& Johnson bonds for $10,000. April 30 Purchases Starbucks notes for $4,400. On June 30,2022 , the fair value of the Johnson \& Johnson bonds is $12,000 and the Starbucks notes is $3,800. Required: 1. Prepare journal entries to record the April purchases of trading securities by Business Solutions. 2. On June 30, 2022, prepare the adjusting entry to record any necessary fair value adjustment to its portfolio of trading securities. Complete this question by entering your answers in the tabs below. On June 30,2022 , prepare the adjusting entry to record any necessary fair value adjustment to its portfolio of trading securities. Journal entry worksheet Note: Enter debits before credits
