Reference no: EM13895198

Harris Company, which began operations in 2013, invests its idle cash in trading securities. The following transactions relate to its short  term investments in its trading securities. 

2013 Mar. 10 Purchased 2,400 shares of AOL at $ 59.15 per share plus a $ 1,545 commission. 
May 7 Purchased 5,000 shares of MTV at $ 36.25 per share plus a $ 2,855 commission. 
Sept. 1 Purchased 1,200 shares of UPS at $ 57.25 per share plus a $ 1,250 commission. 
2014 Apr. 26 Sold 5,000 shares of MTV at $ 34.50 per share less a $ 2,050 commission. 
Apr. 27 Sold 1,200 shares of UPS at $ 60.50 per share less an $ 1,788 commission.
June 2 Purchased 3,600 shares of SPW at $ 172 per share plus a $ 3,250 commission. June 14 Purchased 900 shares of Walmart at $50.25 per share plus a $1,082 commission. 
2015 Jan. 28 Purchased 2,000 shares of PepsiCo at $ 43 per share plus a $ 2,890 commission. 
Jan. 31 Sold 3,600 shares of SPW at $ 168 per share less a $ 2,040 commission. 
Aug. 22 Sold 2,400 shares of AOL at $ 56.75 per share less a $ 2,480 commission. 
Sept. 3 Purchased 1,500 shares of Vodaphone at $40.50 per share plus an $ 1,680 commission. 
Oct. 9 Sold 900 shares of Walmart at $ 53.75 per share less a $ 1,220 commission. 

Required: 1. Prepare journal entries to record these short term investment activities for the years shown. (Ignore any year end adjusting entries.) 2. On December 31, 2015, prepare the adjusting entry to record any necessary fair value adjustment for the portfolio of trading securities when PepsiCo's share price is $ 41 and Vodaphone's share price is $ 37. (Assume the Fair Value Adjustment Trading account had an unadjusted balance of zero.)