Question

Paris Enterprises, which began operations in 2015, invests in long-term available-for-sale securities. Following is a series of transactions and events involving its long-term investment activity.
2015
Mar. 10 Purchased 1,200 shares of Apple at $25.50 per share plus $800 commission.
Apr. 7 Purchased 2,500 shares of Ford at $22.50 per share plus $1,033 commission.
Sept. 1 Purchased 600 shares of Polaroid at $47.00 per share plus $890 commission.
Dec. 31 Per share fair values for stocks in the portfolio are: Apple, $27.50; Ford, $21.00; Polaroid, $49.00.
2016
Apr. 26 Sold 2,500 shares of Ford at $20.50 per share less a $1,207 commission.
June 2 Purchased 1,800 shares of Duracell at $19.25 per share plus a $1,050 commission.
June 14 Purchased 1,200 shares of Sears at $21 per share plus a $280 commission.
Nov. 27 Sold 600 shares of Polaroid at $51 per share less an $845 commission.
Dec. 31 Per share fair values for stocks in the portfolio are: Apple, $29.00; Duracell, $18.00; Sears, $23.00.
2017
Jan. 28 Purchased 1,000 shares of Coca-Cola Co. at $40 per share plus a $1,480 commission.
Aug. 22 Sold 1,200 shares of Apple at $21.50 per share less a $1,850 commission.
Sept. 3 Purchased 3,000 shares of Motorola at $28 per share plus a $780 commission.
Oct. 9 Sold 1,200 shares of Sears at $24.00 per share less a $599 commission.
Oct. 31 Sold 1,800 shares of Duracell at $15.00 per share less an $898 commission.
Dec. 31 Per share fair values for stocks in the portfolio are: Coca-Cola, $48.00; Motorola, $24.00.
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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  • CreatedApril 23, 2015
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