In its first year of operations, DeMarco Company had the following selected transactions in stock investments that are considered trading securities.
June 1Purchased for cash 600 shares of Sanburg common stock at $24 per share.
July 1Purchased for cash 800 shares of Cey Corporation common stock at $33 per share.
Sept. 1Received a $1 per share cash dividend from Cey Corporation.
Nov. 1Sold 200 shares of Sanburg common stock for cash at $27 per share.
Dec. 15Received a $0.50 per share cash dividend on Sanburg common stock.
At December 31, the fair values per share were Sanburg $25 and Cey $30.
Instructions
(a)Journalize the transactions.
(b)Prepare the adjusting entry at December 31 to report the securities at fair value.