Question

:Carlsville Company, which began operations in 2015, invests its idle cash in trading securities.

The following transactions are from its short-term investments in trading securities.

2015 :

Jan. 20 Purchased 800 shares of Ford Motor Co. at $28 per share plus a $120 commission.

Feb. 9 Purchased 2,300 shares of Lucent at $31 per share plus a $190 commission.

Oct. 12 Purchased 780 shares of Z-Seven at $7.60 per share plus a $95 commission.

Dec. 31 Fair value of the short-term investments in trading securities is $104,400.

2016 :

Apr. 15 Sold 800 shares of Ford Motor Co. at $31 per share less a $290 commission.

July 5 Sold 780 shares of Z-Seven at $10.50 per share less a $100 commission.

July 22 Purchased 1,700 shares of Hunt Corp. at $39 per share plus a $225 commission.

Aug. 19 Purchased 1,800 shares of Donna Karan at $49.00 per share plus a $105 commission.

Dec. 31 Fair value of the short-term investments in trading securities is $221,500.

2017:

Feb. 27 Purchased 4,000 shares of HCA at $31 per share plus a $430 commission.

Mar. 3 Sold 1,700 shares of Hunt at $34 per share less a $120 commission.

June 21 Sold 2,300 shares of Lucent at $28.75 per share less a $32 commission.

June 30 Purchased 1,300 shares of Black & Decker at $47.50 per share plus a $595 commission.

Nov. 1 Sold 1,800 shares of Donna Karan at $49.00 per share less a $124 commission.

Dec. 31 Fair value of the short-term investments in trading securities is $192,900

– Prepare journal entries to record these short-term investment activities for the years shown.

On December 31 of each year, prepare the adjusting entry to record any necessary fair value adjustment for the portfolio of trading securities. (If no entry is required select No journal entry required in the first entry field. Do not round your intermediate calculations.)