In February 2003, Packard Corporation purchased the following securities. Prior to these purchases, Packard had no portfolio of investment securities.
|
Security |
Type |
Classification |
Cost |
|
1 |
Debt |
Trading |
$11,500 |
|
2 |
Equity |
Trading |
9,000 |
|
3 |
Equity |
Available for sale |
7,250 |
|
4 |
Debt |
Available for sale |
12,300 |
During 2003, Packard received $2,400 in interest and $1,800 in dividends. On December 31, 2003, Packard’s portfolio of securities had the following market values:
|
Security |
Fair Market Value |
|
1 |
$12,000 |
|
2 |
8,750 |
|
3 |
7,500 |
|
4 |
12,500 |
Prepare the journal entries required to record each of these transactions.