Problem $15-1$A $($Algo$)$ Recording and adjusting trading debt securities LO P$1$

Kirkland Company had no trading debt securities prior to this year. It had the following transactions this year involving trading debt

securities$.$

August $2$ Purchased Verizon bonds for $$50,000.$

September $7$ Purchased Apple bonds for $$75,000.$

September $12$ Purchased Mastercard bonds for $$60,000.$

October $21$ Sold some of its Verizon bonds that had cost $$4,000$ for $$4,100$ cash.

October $23$ Sold some of its Apple bonds that had cost $$55,000$ for $$55,400$ cash.

November $1$ Purchased Walmart bonds for $$80,000.$

December $10$ sold all of its Mastercard bonds for $$58,000$ cash.

Required:

Prepare journal entries to record these transactions.

Prepare a table to compare the year$-$end cost and fair values of its trading debt securities$,$ Year$-$end fair values: Verizon, $$48,500$;

Apple, $$42,000$; and Walmart, $$59,000.$

Prepare the adjusting entry to record the year$-$end fair value adjustment for the portfolio of trading debt securities$.$

Complete this question by entering your answers in the tabs below.