prepare journal entries to record the facts in the case assuming that lightning purc 558842

Recording Passive Investments On March 1, 2011, Lightning Technology purchased 8,000 shares of Computing Services Company for $17 per share. The following information applies to the stock price of Computing Services:

Price

12/31/2011

$15

12/31/2012

21

12/31/2013

26

Required:

1. Prepare journal entries to record the facts in the case, assuming that Lightning purchased the shares for the trading securities portfolio.

2. Prepare journal entries to record the facts in the case, assuming that Lightning purchased the shares for the available for sale securities portfolio.

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