Venice Enterprises, which began operations in 2011, invests in long-term available-for-sale securities. Following is a series of

Question:

Venice Enterprises, which began operations in 2011, invests in long-term available-for-sale securities. Following is a series of transactions and events involving its long-term investment activity.

2011

Mar. 10 Purchased 2,400 shares of Apple at $33.25 per share plus $1,995 commission.

Apr. 7 Purchased 5,000 shares of Ford at $17.50 per share plus $2,625 commission.

Sept. 1 Purchased 1,200 shares of Polaroid at $49.00 per share plus $1,176 commission.

Dec. 31 Per share fair values for stocks in the portfolio are: Apple, $35.50; Ford, $17.00; Polaroid, $51.75.

2012

Apr. 26 Sold 5,000 shares of Ford at $16.38 per share less a $2,237 commission.

June 2 Purchased 3,600 shares of Duracell at $18.88 per share plus a $2,312 commission.

June 14 Purchased 900 shares of Sears at $24.50 per share plus a $541 commission.

Nov. 27 Sold 1,200 shares of Polaroid at $52 per share less a $1,672 commission.

Dec. 31 Per share fair values for stocks in the portfolio are: Apple, $35.50; Duracell, $18.00; Sears, $26.00.

2013

Jan. 28 Purchased 2,000 shares of Coca-Cola Co. at $41 per share plus a $3,280 commission.

Aug. 22 Sold 2,400 shares of Apple at $29.75 per share less a $2,339 commission.

Sept. 3 Purchased 1,500 shares of Motorola at $29 per share plus a $870 commission.

Oct. 9 Sold 900 shares of Sears at $27.50 per share less a $619 commission.

Oct. 31 Sold 3,600 shares of Duracell at $16.00 per share less a $1,496 commission.

Dec. 31 Per share fair values for stocks in the portfolio are: Coca-Cola, $46.00; Motorola, $22.00.

Required

1. Prepare journal entries to record these transactions and events and any year-end fair value adjustments to the portfolio of long-term available-for-sale securities.

2. Prepare a table that summarizes the

(a) Total cost,

(b) Total fair value adjustment, and

3. 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.

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