Venice Enterprises, which began operations in 2011, invests in long term available for sale securities.
Following is a series of transactions and events involving its long term investment activity.
2011
Mar. 10 Purchased 2,400 shares of Apple at $33.25 per share plus $1,995 commission.
Apr. 7 Purchased 5,000 shares of Ford at $17.50 per share plus $2,625 commission.
Sept. 1 Purchased 1,200 shares of Polaroid at $49.00 per share plus $1,176 commission.
Dec. 31 Per share fair values for stocks in the portfolio are: Apple, $35.50; Ford, $17.00; Polaroid, $51.75.
2012
Apr. 26 Sold 5,000 shares of Ford at $16.38 per share less a $2,237 commission.
June 2 Purchased 3,600 shares of Duracell at $18.88 per share plus a $2,312 commission.
June 14 Purchased 900 shares of Sears at $24.50 per share plus a $541 commission.
Nov. 27 Sold 1,200 shares of Polaroid at $52 per share less a $1,672 commission.
Dec. 31 Per share fair values for stocks in the portfolio are: Apple, $35.50; Duracell, $18.00; Sears, $26.00.
2013
Jan. 28 Purchased 2,000 shares of Coca Cola Co. at $41 per share plus a $3,280 commission.
Aug. 22 Sold 2,400 shares of Apple at $29.75 per share less a $2,339 commission.
Sept. 3 Purchased 1,500 shares of Motorola at $29 per share plus a $870 commission.
Oct. 9 Sold 900 shares of Sears at $27.50 per share less a $619 commission.
Oct. 31 Sold 3,600 shares of Duracell at $16.00 per share less a $1,496 commission.
Dec. 31 Per share fair values for stocks in the portfolio are: Coca Cola, $46.00; Motorola, $22.00.
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 for 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.