Accounting for Trading Securities
Fox Company made the following transactions in the common stock of NOP Company:
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July 10, 2006
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Purchased 10,000 shares at $45 per share.
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Sept. 29, 2007
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Sold 2,000 shares for $51 per share.
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Aug. 17, 2008
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Sold 2,500 shares for $33 per share.
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The end-of-year market prices for the shares were as follows:
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December 31, 2006
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$47 per share
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December 31, 2007
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39 per share
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December 31, 2008
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31 per share
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Instructions: Prepare the necessary entries for 2006, 2007, and 2008, assuming the NOP stock is classified as a trading security.