Question: Harris Company which began operations in 2015 invests its idle

Harris Company, which began operations in 2015, invests its idle cash in trading securities. The following transactions relate to its short-term investments in its trading securities.
2015
Mar. 10 Purchased 2,400 shares of AOL at $59.15 per share plus a $1,545 commission.
May 7 Purchased 5,000 shares of MTV at $36.25 per share plus a $2,855 commission.
Sept. 1 Purchased 1,200 shares of UPS at $57.25 per share plus a $1,250 commission.
Dec. 31 Fair value of the short-term investments in trading securities is $380,000.
2016
Apr. 26 Sold 5,000 shares of MTV at $34.50 per share less a $2,050 commission.
Apr. 27 Sold 1,200 shares of UPS at $60.50 per share less an $1,788 commission.
June 2 Purchased 3,600 shares of SPW at $172 per share plus a $3,250 commission.
June 14 Purchased 900 shares of Walmart at $50.25 per share plus a $1,082 commission.
Dec. 31 Fair value of the short-term investments in trading securities is $828,000.
2017
Jan. 28 Purchased 2,000 shares of PepsiCo at $43 per share plus a $2,890 commission.
Jan. 31 Sold 3,600 shares of SPW at $168 per share less a $2,040 commission.
Aug. 22 Sold 2,400 shares of AOL at $56.75 per share less a $2,480 commission.
Sept. 3 Purchased 1,500 shares of Vodaphone at $40.50 per share plus a $1,680 commission.
Oct. 9 Sold 900 shares of Walmart at $53.75 per share less a $1,220 commission.
Dec. 31 Fair value of the short-term investments in trading securities is $140,000.
Required
Prepare journal entries to record these short-term investment activities for the years shown. On December 31 of each year, prepare the adjusting entry to record any necessary fair value adjustment for the portfolio of trading securities.


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  • CreatedApril 23, 2015
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