accounting help 450233

Aug 29, 2021 | Uncategorized

Ben Affleck, Inc., which began operations in 2011, invests in long term available for sale securities. Following is a series of transactions and events determining its long term investment activity.

2011
Jan. 20 Purchased 2,000 shares of Johnson & Johnson at $22.00 per share plus a $240 commission.
Feb. 9 Purchased 1,000 shares of Sony at $46.20 per share plus a $235 commission.
June 12 Purchased 1,800 shares of Mattel at $27 per share plus an $195 commission.
Dec. 31

Per share fair values for stocks in the portfolio are Johnson & Johnson, $23.00; Mattel, $25.50; Sony, $38.

2012
Apr. 15 Sold 2,000 shares of Johnson & Johnson at $25.00 per share less a $685 commission.
July 5 Sold 1,800 shares of Mattel at $25.50 per share less a $491 commission.
July 22 Purchased 660 shares of Sara Lee at $22.50 per share plus a $450 commission.
Aug. 19 Purchased 900 shares of Eastman Kodak at $14 per share plus a $198 commission.
Dec. 31

Per share fair values for stocks in the portfolio are: Kodak, $16.25; Sara Lee, $20.00; Sony, $35.00.

2013
Feb. 27 Purchased 2,600 shares of Microsoft at $68 per share plus a $515 commission.
June 21 Sold 1,000 shares of Sony at $48.00 per share less a $2,640 commission.
June 30 Purchased 1,700 shares of Black & Decker at $36.00 per share plus a $435 commission.
Aug. 3 Sold 660 shares of Sara Lee at $31.25 per share less a $435 commission.
Nov. 1 Sold 900 shares of Eastman Kodak at $19.75 per share less a $2,309 commission.
Dec. 31 Per share fair values for stocks in the portfolio are: Black & Decker, $39.00; Microsoft, $70.00

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 (c) total fair value of the portfolio of long term available for sale securities at each year end.

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. (Do not round your intermediate calculations. Record the transactions in the given order. Leave no cells blank be certain to enter “0” wherever required. Losses should be indicated by a minus sign. Omit the “$” sign in your response.)