Question: I need this problem solved in a specific way. Refer to the second picture for reference. Clarity Corporation had the following transactions involving investments in

I need this problem solved in a specific way. Refer to the second picture for reference.

Clarity Corporation had the following transactions involving investments in trading securities during the year. Prior to these transactions, Clarity had never had any investments in trading securities. Prepare the required general journal entries to record these transactions. Feb. 16 Feb. 26 Mar. 2 Mar. 28 Purchased 800 shares of GN Corporation stock at $28 per share plus a $400 brokerage fee. Purchased 500 shares of Honeyville Co. stock at $19 per share plus a $300 brokerage fee. Received a $0.95 per share dividend from the GN Corporation. Sold 200 shares of GN Corporation stock for $31 per share less a $150 brokerage fee. Sold 150 shares of Honeyville Co. stock at $17 per share less a $100 brokerage fee. The company is preparing quarterly financial statements, prepare an adjusting entry for the fair value adjustment on the trading securities. At April 30, the GN stock has a fair value of $30 per share, and the Honeyville stock has a fair value of $16 per share. Apr. 20 Apr. 30 ACCOUNTING FOLLATION ASSETS LIABILITIES EQUITY POST. REF. DEBIT CREDIT DATE Feb. 1 DESCRIPTION Investments-Caldwell Inc. 375.075.00 1 Cash 375,075.00 1 May 1 Investments-Holland Inc. 126,090.00 1 Cash 126,090.00 1 Jul. 1 Cash 206,890.00 Loss on Sale of Investments 18,155.00 Investments-Caldwell Inc. 225,045.00 Jul 31 Cash 1,500.00 Dividend Revenue 1,500.00 Adjusting Entries Dec. 31 15,120.00 Unrealized Loss on Trading Investments Valuation Allowance for Trading Investments 15,120.00 1

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