Accounting for Trading Securities
Fox Company made the following transactions in the common stock of NOP Company:
|
July 10, 2006 |
Purchased 10,000 shares at $45 per share. |
|
Sept. 29, 2007 |
Sold 2,000 shares for $51 per share. |
|
Aug. 17, 2008 |
Sold 2,500 shares for $33 per share. |
The end of year market prices for the shares were as follows:
|
December 31, 2006 |
$47 per share |
|
December 31, 2007 |
39 per share |
|
December 31, 2008 |
31 per share |
Instructions: Prepare the necessary entries for 2006, 2007, and 2008, assuming the NOP stock is classified as a trading security.