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    Operations for Tennant Securities

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    Tennant Security, which began operations in 2009, invests in Long-term available-for-sale securities. Folloing 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 market 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 Eastern Kodak at $14 per share plus a $198 commission
    Dec. 31 Per share market values for stocks in theportfolio 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 commisson
    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 Sra Lee at $16.25 per share less a $435 commission
    Nov. 1 Sold 900 shares of Eeastern Kodak at $19.75 per share less a $625 commission
    Dec. Per share market values for stocks in the portfolio are: BVlack & Decker, $41; Microsoft, $67.

    Required
    1: Prepare journal entries to record these transactions and events and any year-end market adjustments to the portfolio of long-term available-for-sale securities.

    2: Prepare a table that summarizes the (a) total cost, (b) total market adjustment (c) total market 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.

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    Solution Summary

    Operations for tenants securities are examined.

    $2.19