Investments Cost Fair Value Investments Cost Fair Value No. Account Titles and E

Question

Investments Cost Fair Value Investments Cost Fair Value No. Account Titles and Explanation Debit Credit (a) (b) (c) (d) Open Show Work

Exercise 17-15

Your answer is partially correct. Try again. Sweet Company has the following securities in its portfolio on December 31, 2017. None of these investments are accounted for under the equity method.
Investments Cost Fair Value 1,500 shares of Gordon, Inc., Common $79,600 $75,200 5,000 shares of Wallace Corp., Common 183,000 178,300 400 shares of Martin, Inc., Preferred 59,100 60,600 $321,700 $314,100
All of the securities were purchased in 2017.
In 2018, Sweet completed the following securities transactions.
March 1 Sold the 1,500 shares of Gordon, Inc., Common, @ $45 less fees of $1,200. April 1 Bought 700 shares of Earnhart Corp., Common, @ $75 plus fees of $1,300.
Sweet’s portfolio of equity securities appeared as follows on December 31, 2018.
Investments Cost Fair Value 5,000 shares of Wallace Corp., Common $183,000 $178,300 700 shares of Earnhart Corp., Common 53,800 50,300 400 shares of Martin, Inc., Preferred 59,100 56,900 $295,900 $285,500
Prepare the general journal entries for Sweet Company for:
(a) The 2017 adjusting entry. (b) The sale of the Gordon stock. (c) The purchase of the Earnhart stock. (d) The 2018 adjusting entry for the trading portfolio.
(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) Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

No Accounts Title Dr Cr a Unrealized Holding Gain/Loss -Income 7600 Fair Value Adjustment (Trading) 7600 (321700-314100) (being adjusting entry is made) b Cash (1500*45)-1200 66300 Loss on sale of securities 8900 Trading Securities 75200 ( being sale of securities on loss) c Trading Securities 53800 Cash 53800 (700*75)+1300 (being purchase of securities) d Unrealized Holding Gain/Loss -Income 7200 Fair Value Adjustment (Trading) 7200 Cost Value on Dec 31 2017 Fair value 5,000 shares of Wallace Corp., Common 178300 $178,300 $0 700 shares of Earnhart Corp., Common 53800 50,300 -3,500 400 shares of Martin, Inc., Preferred 60600 56,900 -3,700 ($7,200) If any doubt please comment

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