Kenseth Company has the following securities in its trading portfolio of securit
ID: 2457154 • Letter: K
Question
Kenseth Company has the following securities in its trading portfolio of securities on December 31, 2013.
Investments (Trading)
Cost
Fair Value
All of the securities were purchased in 2013.
In 2014, Kenseth completed the following securities transactions.
Kenseth Company’s portfolio of trading securities appeared as follows on December 31, 2014.
Investments (Trading)
Cost
Fair Value
Prepare the general journal entries for Kenseth Company for:
(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
No.
Account Titles and Explanation
Debit
Credit
(a)
(b)
(c)
(d)
Investments (Trading)
Cost
Fair Value
1,500 shares of Gordon, Inc., Common $99,750 $96,260 5,000 shares of Wallace Corp., Common 192,900 188,380 400 shares of Martin, Inc., Preferred 66,560 68,330 $359,210 $352,970Explanation / Answer
Solution :
No.
Account Titles and Explanation
Debit
Credit
(a)
UNREALISED GAIN/LOSS
6240
FAIR VALUE ADJUSTMENT
6240
(359210-352970)
(b)
CASH (1500*53)-1408
78092
LOSS ON SALE OF INVESTMENT TRADING SECURITIES (99750-78092)
21658
INVESTMENTS IN TRADING SECURITIES
99750
(c)
INVESTMENTS IN TRADING SECURITIES
63125
CASH
63125
(700*88)+1525
(d)
FAIR VALUE ADJUSTMENT
17080
UNREALISED GAIN/LOSS
17080
(322585-311745)-6240
No.
Account Titles and Explanation
Debit
Credit
(a)
UNREALISED GAIN/LOSS
6240
FAIR VALUE ADJUSTMENT
6240
(359210-352970)
(b)
CASH (1500*53)-1408
78092
LOSS ON SALE OF INVESTMENT TRADING SECURITIES (99750-78092)
21658
INVESTMENTS IN TRADING SECURITIES
99750
(c)
INVESTMENTS IN TRADING SECURITIES
63125
CASH
63125
(700*88)+1525
(d)
FAIR VALUE ADJUSTMENT
17080
UNREALISED GAIN/LOSS
17080
(322585-311745)-6240
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