Shaq Security, 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 900 shares of Johnson & Johnson at $18.75 per share plus a $590 commission.
Feb. 9 Purchased 2,200 shares of Sony at $46.88 per share plus a $2,578 commission.
June 12 Purchased 500 shares of Mattel at $55.50 per share plus an $832 commission.
Dec. 31 Per share fair values for stocks in the portfolio are Johnson & Johnson, $20.38; Mattel, $57.25; Sony, $39.
2012
Apr. 15 Sold 900 shares of Johnson & Johnson at $21.75 per share less a $685 commission.
July 5 Sold 500 shares of Mattel at $49.13 per share less a $491 commission.
July 22 Purchased 1,600 shares of Sara Lee at $36.25 per share plus a $1,740 commission.
Aug. 19 Purchased 1,800 shares of Eastman Kodak at $28 per share plus a $1,260 commission.
Dec. 31 Per share fair values for stocks in the portfolio are: Kodak, $31.75; Sara Lee, $30.00; Sony, $36.50.
2013
Feb. 27 Purchased 3,400 shares of Microsoft at $23.63 per share plus a $1,606 commission.
June 21 Sold 2,200 shares of Sony at $40.00 per share less a $2,640 commission.
June 30 Purchased 1,200 shares of Black & Decker at $47.50 per share plus a $1,995 commission.
Aug. 3 Sold 1,600 shares of Sara Lee at $31.25 per share less a $1,750 commission.
Nov. 1 Sold 1,800 shares of Eastman Kodak at $42.75 per share less a $2,309 commission.
Dec. 31 Per share fair values for stocks in the portfolio are: Black & Decker, $56.50; Microsoft, $28.
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 (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.