The following securities are in Pascual Company’s portfolio of long-term available for-sale securities at December 31, 2008." 1,000 shares of Abel Corporation common stock at a cost of $52,000 1,400 shares of Frey Corporation common stock at a cost of $84,000 1,200 shares of Weiss Corporation preferred stock at a cost of $33,600 On December 31, 2008, the total cost of the portfolio equaled total fair value. Pascual had the following transactions related to the securities during 2009.
Jan 20 Sold 1,000 shares of Abel Corporation common stock at $55 per share, less brokerage fees of $600 Jan 28 Purchased 400 shares of $70 par value common stock of Rosen Corporation at $78 per share, plus brokerage fees of $480 Jan 30 Received a cash dividends of $1.15 per share on Frey Corporation common stock. Feb 8 Received a cash dividends of $0.40 per share on Weiss Corporation preferred stock. Feb 18 Sold all 1,200 shares of Weiss Corporation preferred stock at $27 per share, less brokerage fees of $360 Jul 30 Received a cash dividends of $1.00 per share on Frey Corporation common stock. Sep 6 Purchased an additional 900 shares of the $70 par value common stock of Rosen Corporation at $82 per share, plus brokerage fees of $1,200 Dec 1 Received a cash dividends of $1.50 per share on Rosen Corporation common stock. At December 31, 2009, the fair values of the securities were: Frey Corporation common stock $64 per share Rosen Corporation common stock $72 per share Pascual Company uses separate account titles for each investment, such as “Investment in Frey Corporation Common Stock.”
Instructions: (a) Prepare journal entries to record the transactions. (b) Post to the investment accounts. (Use T accounts.) (c) Prepare the adjusting entry at December 31, 2012 to report the portfolio at fair value. (d) Show the balance sheet presentation at December 31, 2012, for the investment-related accounts.
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