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Prepare journal entries relating to purchase and sale

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On December 5, Taylor Inc., purchased 2000 shares of Company A at $60.5 per share, and 1000 shares of Company B at $70.75 per share. Broker charged commission at $25 for shares of Company A and $20 for shares of Company B. On December 10, Taylor Inc., sold 500 shares of Company A for a total of $29000 (less $30 as brokerage commission) and 400 shares of Company B for a total of $30000 (less $25 as brokerage commission).

Question 1. Prepare journal entries relating to purchase and sale of shares of Company A and Company B.

Question 2. Record journal entries relating to the necessary adjustment of unrealized holding gain or unrealized holding loss on sale of shares of Company A and Company B on December 31, assuming that the market value of remaining shares of Company A is $105000 and Company B is $37000.

Note: Prepare separate entries for purchase and sale of shares and unrealized holding gain or loss of Company A and Company B.

Reference no: EM132595878

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