Question - Western Capital Inc. is a regional investment company that began operations on January 1, 2010. The following transactions relate to trading securities acquired by Western Capital Inc., which has a fiscal year ending on December 31:
2010
Feb. 3. Purchased 2,500 shares of Titan Inc. as a trading security at $35 per share plus a brokerage commission of $500.
Mar. 12. Purchased 1,200 shares of Quick Tyme Inc. as a trading security at $14 per share plus a brokerage commission of $240.
May 15. Sold 600 shares of Titan Inc. for $36 per share less a $80 brokerage commission. June 12. Received an annual dividend of $0.12 per share on Titan Inc. stock.
Dec. 31. The portfolio of trading securities was adjusted to fair values of $15 and $39 per share for Quick Tyme Inc. and Titan Inc., respectively.
2011
Apr. 9. Purchased 1,100 shares of Aspire Inc. as a trading security at $41 per share plus a $165 brokerage commission.
June 15. Received an annual dividend of $0.15 per share on Titan Inc. stock.
Aug. 20. Sold 200 shares of Aspire Inc for $35 per share less a $60 brokerage commission. Dec. 31. The portfolio of trading securities was adjusted to fair value using the following fair values per share for the trading securities:
Aspire Inc. $31
Quick Tyme Inc. 16
Titan Inc. 37
The portfolio of trading securities was adjusted to fair value.
Instructions
1. Journalize the entries to record these transactions.
2. Prepare the investment-related current asset balance sheet disclosures for Western Capital Inc. on December 31, 2011.
3. How are unrealized gains or losses on trading investments disclosed on the finan¬cial statements of Western Capital Inc.?