tennant security which began operations in 2009 invests in long term available for s 4374781

Tennant Security, which began operations in 2009, invests in long-term available-for-sale securities. Following is a series of transactions and events determining its long-term investment activity. 2009 Jan. 20 Purchased 1,200 shares of Johnson & Johnson at $20.50 per share plus a $240 commission. Feb. 9 Purchased 1,000 shares of Sony at $46.20 per share plus a $220 commission. June 12 Purchased 1,700 shares of Mattel at $28 per share plus a $195 commission. Dec. 31 Per share fair values for stocks in the portfolio are Johnson & Johnson, $21.50; Mattel, $26.50; Sony, $38. 2010 Apr. 15 Sold 1,200 shares of Johnson & Johnson at $23.50 per share less a $525 commission. July 5 Sold 1,700 shares of Mattel at $26.50 per share less a $235 commission. July 22 Purchased 500 shares of Sara Lee at $22.50 per share plus a $420 commission. Aug. 19 Purchased 900 shares of Eastman Kodak at $14 per share plus a $198 commission. Dec. 31 Per share fair values for stocks in the portfolio are: Kodak, $16.25; Sara Lee, $20.00; Sony, $35.00. 2011 Feb. 27 Purchased 3,000 shares of Microsoft at $65 per share plus a $520 commission. June 21 Sold 1,000 shares of Sony at $48.00 per share less an $880 commission. June 30 Purchased 1,500 shares of Black & Decker at $38 per share plus a $435 commission. Aug. 3 Sold 500 shares of Sara Lee at $16.25 per share less a $435 commission. Nov. 1 Sold 900 shares of Eastman Kodak at $19.75 per share less a $625 commission. Dec. 31 Per share fair values for stocks in the portfolio are: Black & Decker, $41; Microsoft, $67. 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 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 and (b) the unrealized gains or losses for the portfolio of long-term available-for-sale securities at each year-end. View Solution:
Tennant security which began operations in 2009 invests in longterm

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