Chapter A, Problem 6E

Reporting Gains and Losses in the Trading Securities Portfolio

Using the data in EA-5, assume that Dearden management purchased the Jaffa stock for the trading securities portfolio instead of the available-for-sale securities portfolio. Prepare any journal entries that are required by the facts presented in the case.

Reporting Gains and Losses in the Available-for-Sale Securities Portfolio

On March 10, 2015, Dearden, Inc., purchased 15,000 shares of Jaffa stock for $35 per share. Management recorded it in the available-for-sale securities portfolio. The following information pertains to the price per share of Jaffa stock:

	Price
12/31/2015	$33
12/31/2016	36
12/31/2017	32

Dearden sold all of the Jaffa stock on September 12, 2018, at a price of $30 per share. Prepare any journal entries that are required by the facts presented in this case.