Exercise 17-15 Flint Company has the following securities in its portfolio on De

Question

Exercise 17-15 Flint Company has the following securities in its portfolio on December 31, 2017. None of these investments are accounted for under the equity method Fair Value $71,400 158,400 63,800 $293,600 Investments Cost 1,500 shares of Gordon, Inc., Common 5,000 shares of Wallace Corp., Common 400 shares of Martin, Inc., Preferred $76,300 163,700 62,400 $302,400 All of the securities were purchased in 2017. In 2018, Flint 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. Flint's portfolio of equity securities appeared as follows on December 31, 2018 Cost Fair Value $163,700 $158,400 50,300 60,600 $269,300 Investments 5,000 shares of Wallace Corp., Common 700 shares of Earnhart Corp., Common 400 shares of Martin, Inc., Preferred 53,800 62,400 $279,900

Explanation / Answer

$19,400.00

S.no Particulars Debit Credit a Unrealized Holding Loss or Gain $8,800.00 Fair Value Adjustment $8,800.00 b Cash $66,300.00 Loss on Sale of Stock $10,000.00 Equity Investment $76,300.00 c Equity Investment $51,200.00 Cash $51,200.00 d Unrealized Holding Loss or Gain $19,400.00 Fair Value Adjustment

$19,400.00

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