Question

Bleeker Enterprises, which began operations in 2009, invests in long-term available-for-sale securities. Following is a series of transactions and events involving its long-term investment activity.
2009
Mar. 10 Purchased 1,000 shares of Apple at $23.00 per share plus $240 commission.
Apr. 7 Purchased 1,300 shares of Ford at $46.20 per share plus $225 commission.
Sept. 1 Purchased 1,500 shares of Polaroid at $25.00 per share plus $195 commission.
Dec. 31 Per share fair values for stocks in the portfolio are: Apple, $24.00; Ford, $42.00; Polaroid, $27.00.
2010
Apr. 26 Sold 1,300 shares of Ford at $44.00 per share less a $250 commission.
June 2 Purchased 1,800 shares of Duracell at $19.25 per share plus a $235 commission.
June 14 Purchased 600 shares of Sears at $22.50 per share plus a $470 commission.
Nov. 27 Sold 1,500 shares of Polaroid at $29 per share less a $198 commission.
Dec. 31 Per share fair values for stocks in the portfolio are: Apple, $26.00; Duracell, $18.00; Sears, $25.00.
2011
Jan. 28 Purchased 2,000 shares of Coca-Cola Co. at $69 per share plus a $530 commission.
Aug. 22 Sold 1,000 shares of Apple at $20.00 per share less a $280 commission.
Sept. 3 Purchased 2,000 shares of Motorola at $36 per share plus a $435 commission.
Oct. 9 Sold 600 shares of Sears at $26.25 per share less a $435 commission.
Oct. 31 Sold 1,800 shares of Duracell at $15.00 per share less a $425 commission.
Dec. 31 Per share fair values for stocks in the portfolio are: Coca-Cola, $75.00; Motorola, $32.00.
Required
1. Prepare journal entries to record these transactions and events and any year-end fair value adjustments to the portfolio of long-term available-for-sale securities.
2. Prepare a table that summarizes the (a) total cost, (b) total fair value adjustment, and (c) total fair value for the portfolio of long-term available-for-sale securities at each year-end.
3. Prepare a table that summarizes (a) the realized gains and losses and (b) the unrealized gains or losses for the portfolio of long-term available-for-sale securities at each year-end.


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  • CreatedMarch 18, 2015
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