E17-15
(Equity InvestmentsTrading) Kenseth Company has the followingsecurities in its trading port- folio of securities on December 31,2013.
Investments(Trading) Cost Fair Value
1,500 shares of Gordon, Inc., Common $73,500 $ 69,000
5,000 shares of Wallace Corp.,Common 180,000 175,000
400 shares of Martin, Inc.,Preferred 60,000 61,600
$313,500 $305,600
All of the securities were purchased in 2013.
In 2014, Kenseth completed the following securitiestransactions.
March 1Sold the 1,500 shares ofGordon, Inc., Common, @ $45 less fees of $1,200
April 1 Bought 700 sharesof Earnhart Corp., Common, @ $75 plus fees of $1,300
Kenseth Companys portfolio of trading securities appeared asfollows on December 31, 2014
Investments(Trading) Cost Cost Fair Value
5,000 shares of Wallace Corp.,Common $180,000 $175,000
700 shares of Earnhart Corp.Common 53,800 $50,400
400 shares of Martin, Inc.Preferred 60,000 $58,000
293,800 283,400
Instructions
Prepare the general journal entries for Kenseth Company for:
(a)The 2013 adjusting entry.
(b) The sale of the Gordon stock.
(c)The purchase of the Earnhart stock.
(d) The 2014 adjusting entry for the trading portfolio
E17-15
(Equity InvestmentsTrading) Kenseth Company has the followingsecurities in its trading port- folio of securities on December 31,2013.
Investments(Trading) Cost Fair Value
1,500 shares of Gordon, Inc., Common $73,500 $ 69,000
5,000 shares of Wallace Corp.,Common 180,000 175,000
400 shares of Martin, Inc.,Preferred 60,000 61,600
$313,500 $305,600
All of the securities were purchased in 2013.
In 2014, Kenseth completed the following securitiestransactions.
March 1Sold the 1,500 shares ofGordon, Inc., Common, @ $45 less fees of $1,200
April 1 Bought 700 sharesof Earnhart Corp., Common, @ $75 plus fees of $1,300
Kenseth Companys portfolio of trading securities appeared asfollows on December 31, 2014
Investments(Trading) Cost Cost Fair Value
5,000 shares of Wallace Corp.,Common $180,000 $175,000
700 shares of Earnhart Corp.Common 53,800 $50,400
400 shares of Martin, Inc.Preferred 60,000 $58,000
293,800 283,400
Instructions
Prepare the general journal entries for Kenseth Company for:
(a)The 2013 adjusting entry.
(b) The sale of the Gordon stock.
(c)The purchase of the Earnhart stock.
(d) The 2014 adjusting entry for the trading portfolio