Question

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.

2017

Jan.		20		Purchased 1,000 shares of Ford Motor Co. at $27 per share plus a $120 commission.
Feb.		9		Purchased 2,500 shares of Lucent at $34 per share plus a $195 commission.
Oct.		12		Purchased 760 shares of Z-Seven at $7.60 per share plus a $100 commission.
Dec.		31		Fair value of the short-term investments in trading securities is $122,700.

2018

Apr.		15		Sold 1,000 shares of Ford Motor Co. at $30 per share less a $290 commission.
July		5		Sold 760 shares of Z-Seven at $10.75 per share less a $95 commission.
July		22		Purchased 1,600 shares of Hunt Corp. at $37 per share plus a $225 commission.
Aug.		19		Purchased 1,700 shares of Donna Karan at $47.00 per share plus a $100 commission.
Dec.		31		Fair value of the short-term investments in trading securities is $220,190.

2019

Feb.		27		Purchased 3,700 shares of HCA at $38 per share plus a $410 commission.
Mar.		3		Sold 1,600 shares of Hunt at $32 per share less a $130 commission.
June		21		Sold 2,500 shares of Lucent at $31.75 per share less a $37 commission.
June		30		Purchased 1,200 shares of Black & Decker at $47.50 per share plus a $600 commission.
Nov.		1		Sold 1,700 shares of Donna Karan at $47.00 per share less a $119 commission.
Dec.		31		Fair value of the short-term investments in trading securities is $205,500.

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.)

Answer 1

WORKING