Question

PLEASE SHOW ALL THE STEPS TO COMPLETE THIS PROBLEM. i have looked at the examples for this problem but they all seem to be missing instructions on how to get to the answers. Also, please do not state INVESTMENTS if it is supposed to say Long-term Investments because this is confusing me as to what to give for the account name. Please be very specific when doing this problem because I have not tried to solve this problem and I am still stuck after a couple of hours. Thank you for your help, Once again, please be very specific and show all the steps and calculations for this problem.

Grass Security, which began operations in 2017, invests in long-term available-for-sale securities. Following is a series of transactions and events determining its long-term investment activity.

2017

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 a $195 commission.
Dec.		31		Per share fair values for stocks in the portfolio are Johnson & Johnson, $21.50; Mattel, $30.90; and Sony, $38.

2018

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; and Sony, $35.00.

2019

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 an $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; and 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations.)

Per share fair values for stocks in the portfolio are Johnson & Johnson, $21.50; Mattel, $30.90; and Sony, $38. Record the adjustment to fair value as of December 31, 2017.

Please show all steps to solve for the Per share fair values for the stocks.

Answer 1

1) Journal Entries
Date	Account titles	Debit	Credit
2015
Jan.20	Long-Term Investments—AFS (J&J) (1000 x $20.50) + 240	$20,740
	Cash		$20,740
	Purchased Johnson & Johnson shares
Feb.9	Long-Term Investments—AFS (Sony).(1200 x $46.20) +225	$55,665
	Cash		$55,665
	Purchased Sony shares
June.12	Long-Term Investments—AFS (Mattel) (1500 x $27) + $195	$40,695
	Cash		$40,695
	Purchased Mattel shares
Dec.31	Unrealized Loss - Equity	$3,650
	Market Adjustment—AFS (LT)		$3,650
	Annual adjustment to market values
		Cost	Fair Value	Difference
	j &j = 1000 x 21.50	$20,740	$21,500	$760
	Sony = 1200 x 38	$55,665	$45,600	-$10,065
	Mattel = 1500 x 30.90	$40,695	$46,350	$5,655
	Total	$117,100	$113,450	-$3,650
2016
Apr.15	Cash	$22,975
	Gain on Sale of Investments		$2,235
	Long-Term Investments—AFS (J&J)		$20,740
	Sold Johnson & Johnson shares [(1,000 x $23.50) - $525]
Jul.5	Cash	$35,615
	Loss on Sale of Investments	$5,080
	Long-Term Investments—AFS (Mattel)		$40,695
	Sold Mattel shares [(1,500 x $23.90) - $235]
Jul.22	Long-Term Investments—AFS (Sara Lee) (600 x $22.50 + 480	$13,980
	Cash		$13,980
	Purchased Sara Lee shares
Aug.19	Long-Term Investments—AFS (Eastman Kodak	$15,498
	Cash		$15,498
	Purchased Eastman Kodak shares [(900 x $17 + $198)
Dec. 31	Unrealized Loss - Equity	$10,168
	Market Adjustment—AFS (LT)		$10,168
	Annual adjustment to market values
		Cost	Fair value	Profit/loss
	Kodak	$15,498	$17,325	$1,827
	Sara lee	$13,980	$12,000	-$1,980
	Sony	$55,665	$42,000	-$13,665
				-$13,818
	Fair Value Adjustment account:
	Required balance	$13,818	cr.
	Unadjusted balance	3650	cr.
	Required change	$10,168	cr.
2017
Feb.27	Long-Term Investments—AFS (Microsoft)	$161,325
	Cash		$161,325
	Purchased Microsoft shares [(2400 x $67.00) + $525]
June. 21	Cash	$56,720
	Gain on Sale of Investments		$1,055
	Long-Term Investments—AFS (Sony)		$55,665
	Sold Sony shares [(1,200 x $48.00) - $880].
jun. 30	Long-Term Investments—AFS (Black & Decker)	$50,835
	Cash		$50,835
	Purchased Black & Decker shares [(1,400 x $36.00) + $435]
Aug.3	Cash	$9,315
	Loss on Sale of Investments	$4,665
	Long-Term Investments—AFS (Sara Lee)		$13,980
	Sold Sara Lee shares [(600 x $16.25) - $435]
Nov.1	Cash	$19,850
	Gain on Sale of Investments		$4,352
	Long-Term Investments—AFS (E. Kodak)		$15,498
	Sold Eastman Kodak shares [(900 x $22.75) - $625]
Dec.31	Market Adjustment—AFS (LT)	$21,858
	Unrealized Loss—Equity		$13,818
	Unrealized Gain—Equity		$8,040
	Annual adjustment to market values
		Cost	Fair market	difference
	Black & Decker	$50,835	$54,600	$3,765.00
	Microsoft	$161,325	$165,600	$4,275
	Total			$8,040
	Fair Value Adjustment account:
	Required balance .	$8,040	dr
	Unadjusted balance	$13,818	cr.
	Required change	$21,858	dr.