Here is Kline Company s portfolio of long term available for

sale securities at
Here is Kline Company’s portfolio of long-term available-for-sale securities at December 31,
2013:Cost 1,400 shares of Tabares Inc. common stock......... $73,500 1,200 shares of Munoz
Corporation common stock........84,000 800 shares of H. Hogan Corporation preferred
stock.....33,600On December 31, the total cost of the portfolio equaled the total fair value. Kline
had the following transactions related to the securities during 2014.Jan. 20 Sold 1,400 shares of
Tabares Inc. common stock at $55 per share.28 Purchased 400 shares of $10 par value
common stock of M. Powell Corporation at $78 per share. 30 Received a cash dividend of $1.25
per share on Munoz Corporation common stock.Feb.8 Received cash dividends of $0.40 per
share on H. Hogan Corporation preferred stock. 18 Sold all 800 shares of H. Hogan preferred
stock at $35 per share.July 30 Received a cash dividend of $1.10 per share on Munoz
Corporation common stock.Sept. 6 Purchased an additional 600 shares of the $10 par value
common stock of M. Powell Corporation at $82 per share.Dec. 1 Received a cash dividend of
$1.50 per share on M. Powell Corporation common stock.At December 31, 2014, the fair values
of the securities were:Munoz Corporation common stock..........$65 per shareM. Powell
Corporation common stock..........$77 per shareKline uses separate account titles for each
investment, such as Investment in Munoz Corporation Common Stock.Instructions(a) Prepare
journal entries to record the transactions.(b) Post to the investment accounts. (Use separate T-
accounts for each investment.)(c) Prepare the adjusting entry at December 31, 2014, to report
the portfolio at fair value.(d) Show the balance sheet presentation at December 31, 2014.View
Solution:
Here is Kline Company s portfolio of long term available for sale securities at
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