Capriati Corporation made the following cash investments during 2019, which is the first year in which Capriati

Question:

Capriati made the following cash investments during 2019, which is the first year in which Capriati invested in securities.
1. On January 15, purchased 9,000 ordinary shares of Gonzalez Company at $33.50 per share plus commission $1,980.
2. On April 1, purchased 5,000 ordinary shares of Belmont Co. at $52.00 per share plus commission $3,370.
3. On September 10, purchased 7,000 preference shares of Thep Co. at $26.50 per share plus commission $4,910.
On May 20, 2019, Capriati sold 3,000 shares of Gonzalez Company at a market price of $35 per share less brokerage commissions, taxes, and fees of $2,850. The year-end fair values per share were Gonzalez $30, Belmont $55, and Thep $28. In addition, the chief accountant of Capriati told you that Capriati plans to actively trade these investments.
Instructions
a. Prepare the journal entries to record the above three investment purchases.
b. Prepare the journal entry for the investment sale on May 20.
c. Compute the unrealized gains or losses and prepare the adjusting entries for Capriati on December 31, 2019.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...