Pool Corporation, Inc., is the world’s largest wholesale distributor of swimming pool supplies and equipment. Assume Pool Corporation purchased for cash 400,000 shares of The Walt Disney Company on November 21, 2012, at $48 per share as an investment. The following information applies to the stock price of Disney:
Price per Share
12/31/2012 ..... $45
12/31/2013 ...... 41
12/31/2014 ...... 49
On September 15, 2015, Pool Corporation sold all of the Disney securities at $50 per share.
Required:
1. Prepare journal entries to record the facts in the case, assuming that Pool Corporation purchased the shares for the trading securities portfolio.
2. Prepare journal entries to record the facts in the case, assuming that Pool Corporation purchased the shares for the available-for-sale securities portfolio.