Trading equity securities. Korman Company has the following securities in its po

ID: 2497119 • Letter: T

Question

Trading equity securities.

Korman Company has the following securities in its portfolio of trading equity securities on December 31, 2010:

Cost Fair Value

5,000 shares of Thomas Corp., Common $155,000 $129,000

10,000 shares of Gant, Common 182,000 190,000

$337,000 $319,000

All of the securities had been purchased in 2010. In 2011, Korman completed the following securities transactions:

March 1 Sold 5,000 shares of Thomas Corp., Common @ $28 less fees of $1,500.

April 1 Bought 600 shares of Werth Stores, Common @ $45 plus fees of $550.

The Korman Company portfolio of trading equity securities appeared as follows on December 31, 2011:

Cost Fair Value

10,000 shares of Gant, Common $182,000 $200,500

600 shares of Werth Stores, Common X 25,500

Y $226,000

Instructions

Prepare the general journal entries for Korman Company for:

the 2010 adjusting entry.

the sale of the Thomas Corp. stock.

the purchase of the Werth Stores' stock.

the 2011 adjusting entry.

Trading equity securities. Korman Company has the following securities in its po

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