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Korman Company has the following securities in its portfolio of trading securiti

ID: 2491967 • Letter: K

Question

Korman Company has the following securities in its portfolio of trading securities on December 31, 2014:


All of the securities had been purchased in 2014. In 2015, Korman completed the following securities transactions:


The Korman Company portfolio of trading securities appeared as follows on December 31, 2015:

$217,090

Date

Account Titles and Explanation

Debit

Credit

12-31-14

Date

Account Titles and Explanation

Debit

Credit

3-1-15

Date

Account Titles and Explanation

Debit

Credit

4-1-15

Date

Account Titles and Explanation

Debit

Credit

12-31-15

Cost Fair Value 5,000 shares of Thomas Corp., Common $151,000 $139,000 10,000 shares of Gant, Common 180,000 187,700 $331,000 $326,700

Explanation / Answer

Date Account Titles & Explanations Debit ($) Credit ($) Dec31, 2014 Unrealized loss on trading securities 12000 Investment in shares of Thomas Corporation 12000 (adjustment to fair value) Investment in shares of gant 7700 Unrealized gain on trading shares 7700 (adjustment to fair value) March 1, 2015 cash 154000 Investment in shares of Thomas Corporation 139000 Gain on selling trading securities (sale of trading securities recorded) Investment in shares of Werth Stores 28480 Cash 28480 (purchase of Werth Shares paying $580 as fees) Dec 31, 2015 Investment in shares of gant 51700 Unrealized gain on trading shares 51700 (adjustment to fair value) Unrealized loss on trading securities 2090 Investment in shares of Werth Shares 2090 (adjustment to fair value)