Clarity Corporation Had the Following Transactions Involving Investments in Trading

Essay

Clarity Corporation had the following transactions involving investments in trading securities during the year.Prior to these transactions,Clarity never had any investments in trading securities.Prepare the required general journal entries to record these transactions.
$\begin{array}{|c|c|}\hline \text { Feb. } 16 & \begin{array}{l}\text { Purchased } 800 \text { shares of GN Corporation stock at } \$ 28 \text { per plus a } \$ 400 \\\text { brokerage fee }\end{array} \\\hline \text { Feb. } 26 & \begin{array}{l}\text { Purchased } 500 \text { shares of Honeyville Co. stock at } \$ 19 \text { per share plus a } \$ 300 \\\text { brokerage fee. }\end{array} \\\hline \text { Mar. } 2 & \text { Received a } \$ 0.95 \text { per share dividend from the GN Corporation. } \\\hline \text { Mar. } 28 & \begin{array}{l}\text { Sold } 200 \text { shares of GN Corporation stock for } \$ 31 \text { per share less a } \$ 150 \\\text { brokerage fee. }\end{array} \\\hline \text { Apr. } 20 & \begin{array}{l}\text { Sold } 150 \text { shares of Honeyville Co. stock at } \$ 17 \text { per share less a } \$ 100 \text { brokerage } \\\text { fee. }\end{array} \\\hline \text { Apr. } 30 & \begin{array}{l}\text { The company is preparing quarterly financial statements, so it must prepare an } \\\text { adjusting entry for the market adjustment on the trading securities. At April } 30 \text {, } \\\text { the GN stock has a market value of } \$ 30 \text { per share, and the Honeyville stock has } \\\text { a market value of } \$ 16 \text { per share. }\end{array} \\\hline\end{array}$