The following securities are in Amberwood Companys portfolio of long term available for sale securities at December 31, 2012 Cost 1,000 shares of Reginald Corporation common stock $52,000 1,400 shares of Elderberry Corporation common stock 84,000 1,200 shares of Mattoon Corporation preferred stock ...

a Jan 20 Cash 55000 600 54400 Stock Investments 52000 Gain on Sale of Stock Investments 2400 28 Stoc ...

The following securities are in Amberwood Companys portfolio of long-term available for- sale securities at December 31,

Question:

The following securities are in Amberwood Company’s of long-term available for- sale securities at December 31, 2012.
Cost
1,000 shares of Reginald ....... $52,000
1,400 shares of Elderberry .......84,000
1,200 shares of Mattoon preferred stock.......33,600
On December 31, 2012, the total cost of the equaled total fair value. Amber wood had the following transactions related to the securities during 2013.
Jan. 20 Sold all 1,000 shares of Reginald at $55 per share less brokerage fees of $600.
28 Purchased 400 shares of $70 of Hachito at $78 per share, plus brokerage fees of $480.
30 Received a cash of $1.15 per share on Elderberry Corp. .
Feb. 8 Received cash dividends of $0.40 per share on Mattoon Corp. preferred stock.
18 Sold all 1,200 shares of Mattoon Corp. preferred stock at $27 per share less brokerage fees of $360.
July 30 Received a cash of $1.00 per share on Elderberry Corp. .
Sept. 6 Purchased an additional 900 shares of $10 of Hachito
Corporation at $82 per share, plus brokerage fees of $1,200.
Dec. 1 Received a cash of $1.50 per share on Hachito .
At December 31, 2013, the fair values of the securities were:
Elderberry ........ $64 per share
Hachito .......... $72 per share
Instructions
(a) Prepare journal entries to record the transactions.
(b) Post to the investment accounts. (Use T accounts.)
(c) Prepare the adjusting entry at December 31, 2013 to report the at fair value.
(d) Show the presentation at December 31, 2013, for the investment-related accounts.

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