Question

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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