Problem: Cole Company entered into the transactions listed below during 2003. Prepare the appropriate journal entries for Cole Company. You may omit journal entry explanations but you should show computations.
Jan. 10 Purchased 500 shares of Adams Company common stock for $35,000 as a short-term investment in stock securities.
Apr. 6 Purchased 1,000 shares of Noland Company common stock for $50 per share as a short-term investment in stock securities.
Sept. 20 Sold 400 shares of Noland Company common stock for $21,200.
Dec. 31 Use the following information for year-end adjusting entries:
Fair value per share:
Adams Company Common Stock?$68 per share.
Noland Company Common Stock?$48 per share.
Cole classifies both investments as trading securities.