Question: Recording, adjusting, and reporting long-term available-for-sale Grass Security, which began operations in 2017, invests in long-term available-for-sale ecurities. Following is a series of transactions and

Recording, adjusting, and reporting long-term available-for-sale Grass Security, which began operations in 2017, invests in long-term available-for-sale ecurities. Following is a series of transactions and events determining its long-term securities investment activity. Purchased 1,000 shares of Johnson& Johnson at $20.50 per share plus a $240 Jan. 20commission. Feb. 9Purchased 1.200 shares of Sony at $46.20 per share plus a $225 commission. June12Purchased 1,500 shares of Mattel at $27.00 per share plus a $195 commission Per share fair values for stocks in the portfolio are Johnson & Johnson, $21.50 Dec. 31Mattel, $30.90; and Sony, $38 Sold 1,000 shares of Johnson & Johnson at $23.50 per share less a $525 Apr. 15commission July 5Sold 1,500 shares of Mattel at $23.90 per share less a $235 commission. July 22Purchased 600 shares of Sara Lee at $22.50 per share plus a $480 commission. Purchased 900 shares of Eastman Kodak at $17 per share plus a $198 Aug. 19commission. Per share fair values for stocks in the portfolio are: Kodak, $19.25; Sara Lee, Dec.31$20.00; and Sony, $35.00. Page 654 Purchased 2,400 shares of Microsoft at $67.00 per share plus a $525 Feb. 27commission. June21Sold 1.200 shares of Sony at $48.00 per share less an $880 commission. Purchased 1,400 shares of Black & Decker at $36.00 per share plus a $435 June30commission. Aug. 3Sold 600 shares of Sara Lee at $16.25 per share less a $435 commission Nov. 1Sold 900 shares of Eastman Kodak at $22.75 per share less a $625 commission. Per share fair values for stocks in the portfolio are: Black & Decker, $39.00; and Dec. 31Microsoft, $69.00 Required . Prepare journal entries to record these transactions and events and any year-end fair 2. Prepare a table that summarizes the (a) total cost, (b) total fair value adjustment, value adjustments to the portfolio of long-term available-for-sale securities. and (c) total fair value of the portfolio of long-term available-for-sale securities at each year-end Prepare a table that summarizes (a) the realized gains and losses and (b) the unrealized gains or losses for the portfolio of long-term available-for-sale securities at each year-end. 3

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