Task: Trading equity securities.
Gordon Company has the following securities in its portfolio of trading equity securities on December 31, 2003:
Cost Fair Value
5,000 shares of Milner Corp., Common $160,000 $139,000
10,000 shares of Eddy, Common 182,000 190,000
$342,000 $329,000
All of the securities had been purchased in 2003. In 2004, Gordon completed the following securities transactions:
March 1 Sold 5,000 shares of Milner Corp., Common @ $31 less fees of $1,500.
April 1 Bought 600 shares of Yount Stores, Common @ $50 plus fees of $550.
The Gordon Company portfolio of trading equity securities appeared as follows on December 31, 2004:
Cost Fair Value
10,000 shares of Eddy, Common $182,000 $195,500
600 shares of Yount Stores, Common 30,550 25,500
$212,550 $221,000
Instructions
Prepare the general journal entries for Gordon Company for:
(a) the 2003 adjusting entry.
(b) the sale of the Milner Corp. stock.
(c) the purchase of the Yount Stores' stock.
(d) the 2004 adjusting entry.