Grass Security, which began operations in 2013, invests in long term available for sale securities. Following is a series of transactions and events determining its long term investment activity.
2013 Jan. 20 Purchased 1,000 shares of Johnson & Johnson at $ 20.50 per share plus a $ 240 commission.
Feb. 9 Purchased 1,200 shares of Sony at $ 46.20 per share plus a $ 225 commission.
June 12 Purchased 1,500 shares of Mattel at $ 27.00 per share plus an $ 195 commission.
Dec. 31 Per share fair values for stocks in the portfolio are Johnson & Johnson, $ 21.50; Mattel, $ 30.90; Sony, $ 38.
2014 Apr. 15 Sold 1,000 shares of Johnson & Johnson at $ 23.50 per share less a $ 525 commission.
July 5 Sold 1,500 shares of Mattel at $ 23.90 per share less a $ 235 commission.
July 22 Purchased 600 shares of Sara Lee at $ 22.50 per share plus a $ 480 commission.
Aug. 19 Purchased 900 shares of Eastman Kodak at $ 17 per share plus a $ 198 commission.
Dec. 31 Per share fair values for stocks in the portfolio are: Kodak, $ 19.25; Sara Lee, $ 20.00; Sony, $ 35.00.
2015 Feb. 27 Purchased 2,400 shares of Microsoft at $ 67.00 per share plus a $ 525 commission.
June 21 Sold 1,200 shares of Sony at $ 48.00 per share less a $ 880 commission. June 30 Purchased 1,400 shares of Black & Decker at $ 36.00 per share plus a $ 435 commission.
Aug. 3 Sold 600 shares of Sara Lee at $ 16.25 per share less a $ 435 commission.
Nov. 1 Sold 900 shares of Eastman Kodak at $ 22.75 per share less a $ 625 commission.
Dec. 31 Per share fair values for stocks in the portfolio are: Black & Decker, $ 39.00; Microsoft, $ 69.00.
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,
(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
(b) The unrealized gains or losses for the portfolio of long term available for sale securities at each year end.