Problem:
Gordon company has the following securities in its portfolio of trading equity securities on December 31, 2003:
COST FAIR VALUE
5000 shares of Milner corp .,common $160000 $139000
10000 shares of Eddy, common $182000 $190000
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$342000 $329000
All of the securities had been purchased in 2003. In 2004, Gordon completed the following securities transactions:
March 1 Sold 5000 shares of Milner common @ $ 31 less fees of $1500
April 1 Bought 600 shares of Yount stores, common @ $50 plus fees of $ 500
the Gordon company portfolio of trading equity securities appeared as follow on December 31, 2004:
COST FAIR VALUE
10000 shares of Eddy, common 182000 195500
600 shares of Yount stores, common 30550 25500
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212550 221000
Prepare the general entries for Gordon company for:
A) the 2003 adjusting entry
B) the sales of Milner corp. stock.
C) the purchase of the Yount stores stock
D) the 2004 adjusting entry