Paris Enterprises, which began operations in 2013, invests in long term available for sale securities. Following is a series of transactions and events involving its long term investment activity.
2013 Mar. 10 Purchased 1,200 shares of Apple at $ 25.50 per share plus $ 800 commission.
Apr. 7 Purchased 2,500 shares of Ford at $ 22.50 per share plus $ 1,033 commission.
Sept. 1 Purchased 600 shares of Polaroid at $ 47.00 per share plus $ 890 commission.
Dec. 31 Per share fair values for stocks in the portfolio are: Apple, $27.50; Ford, $21.00; Polaroid, $49.00.
2014 Apr. 26 Sold 2,500 shares of Ford at $ 20.50 per share less a $ 1,207 commission.
June 2 Purchased 1,800 shares of Duracell at $19.25 per share plus a $1,050 commission. June 14 Purchased 1,200 shares of Sears at $ 21 per share plus a $ 280 commission.
Nov. 27 Sold 600 shares of Polaroid at $ 51 per share less a $ 845 commission.
Dec. 31 Per share fair values for stocks in the portfolio are: Apple, $29.00; Duracell, $18.00; Sears, $23.00.
2015Jan. 28 Purchased 1,000 shares of Coca Cola Co. at $40 per share plus a $1,480 commission.
Aug. 22 Sold 1,200 shares of Apple at $ 21.50 per share less a $ 1,850 commission.
Sept. 3 Purchased 3,000 shares of Motorola at $ 28 per share plus a $ 780 commission.
Oct. 9 Sold 1,200 shares of Sears at $ 24.00 per share less a $ 599 commission.
Oct. 31 Sold 1,800 shares of Duracell at $ 15.00 per share less a $ 898 commission.
Dec. 31 Per share fair values for stocks in the portfolio are: Coca Cola, $48.00; Motorola, $24.00.
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 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
(b) The unrealized gains or losses for the portfolio of long term available for sale securities at each year end.