galaxy company completes the following transactions during the current year 648138

Galaxy Company completes the following transactions during the current year.

May 9 Purchases 400 shares of X&O stock as a short term investment in available for sale securities at a cost of $50 per share plus $400 in broker fees.

June 2 Sells 200 shares of its investment in X&O stock at $56 per share. The broker’s commission on this sale is $180.

Dec. 31 The closing market price (fair value) of the X&O stock is $46 per share.

Prepare the May 9 and June 2 journal entries and the December 31 adjusting entry. This is the first and only time the company purchased such securities.