Problem 15-1A Recording transactions and fair value adjustments for trading securities LO P1

Carlsville Company, which began operations in 2017, invests its idle cash in trading securities. The following transactions are from its short-term investments in trading securities.

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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations.) 2017

Jan.

20

Purchased 900 shares of Ford Motor Co. at $28 per share plus a $125 commission.

Feb.

9

Purchased 2,500 shares of Lucent at $38 per share plus a $195 commission.

Oct.

12

Purchased 760 shares of Z-Seven at $7.60 per share plus a $95 commission.

Dec.

31

Fair value of the short-term investments in trading securities is $132,000.

2018

Apr.		15		Sold 900 shares of Ford Motor Co. at $30 per share less a $295 commission.
July		5		Sold 760 shares of Z-Seven at $11.00 per share less a $90 commission.
July		22		Purchased 1,700 shares of Hunt Corp. at $36 per share plus a $230 commission.
Aug.		19		Purchased 2,000 shares of Donna Karan at $46.00 per share plus a $110 commission.
Dec.		31		Fair value of the short-term investments in trading securities is $244,435.

2019

Feb.		27		Purchased 3,900 shares of HCA at $30 per share plus a $400 commission.
Mar.		3		Sold 1,700 shares of Hunt at $31 per share less a $130 commission.
June		21		Sold 2,500 shares of Lucent at $35.75 per share less a $37 commission.
June		30		Purchased 1,400 shares of Black & Decker at $47.50 per share plus a $595 commission.
Nov.		1		Sold 2,000 shares of Donna Karan at $46.00 per share less a $129 commission.
Dec.		31		Fair value of the short-term investments in trading securities is $189,100.

Journal entry worksheet 2 4 Purchased 900 shares of Ford Motor Co. at $28 per share plus a $125 commission Note: Enter debits before credits. Date General Journal Debit Credit Jan 20 Record entry Clear entry View general journal