Problem 15-1A Recording transactions and fair value adjustments for trading securities L.O. P1

[The following information applies to the questions displayed below.]

Ryder Company, which began operations in 2011, invests its idle cash in trading securities. The following transactions are from its short-term investments in its trading securities.

2011
Jan.	20		Purchased 800 shares of Ford Motor Co. at $26 per share plus a $120 commission.
Feb.	9		Purchased 2,600 shares of Lucent at $30 per share plus a $195 commission.
Oct.	12		Purchased 760 shares of Z-Seven at $7.60 per share plus a $90 commission.

2012
Apr.	15		Sold 800 shares of Ford Motor Co. at $31 per share less a $290 commission.
July	5		Sold 760 shares of Z-Seven at $11.25 per share less a $95 commission.
July	22		Purchased 1,800 shares of Hunt Corp. at $31 per share plus a $225 commission.
Aug.	19		Purchased 1,700 shares of Donna Karan at $13 per share plus a $105 commission.

2013
Feb.	27		Purchased 3,800 shares of HCA at $33 per share plus a $400 commission.
Mar.	3		Sold 1,800 shares of Hunt at $26 per share less a $130 commission.
June	21		Sold 2,600 shares of Lucent at $27.75 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 1,700 shares of Donna Karan at $22.80 per share less a $124 commission.

rev: 12_07_2011

rev: 12_07_2011

references

3.value:

9.00 points

Problem 15-1A Part 1

1.

Prepare journal entries to record these short-term investment activities for the years shown. (Ignore any year-end adjusting entries.) (Input all amounts as positive values. Omit the "$" sign in your response.)

Date General Journal Debit Credit

Jan. 20, 2011

Feb. 9, 2011

Oct. 12, 2011

Apr. 15, 2012

July 5, 2012

July 22, 2012

Aug. 19, 2012

Feb. 27, 2013

Mar. 3, 2013

June 21, 2013

June 30, 2013

Nov. 1, 2013

rev: 12_07_2011

references

4.value:

2.00 points

Problem 15-1A Part 2

2.

On December 31, 2013, prepare the adjusting entry to record any necessary fair value adjustment for the portfolio of trading securities when HCA