Date Account Titles and Explanation Debit Credit 12-31-18 SHOW LIST OF ACCOUNTS
ID: 2588308 • Letter: D
Question
Date
Account Titles and Explanation
Debit
Credit
12-31-18
SHOW LIST OF ACCOUNTS
Date
Account Titles and Explanation
Debit
Credit
3-1-19
SHOW LIST OF ACCOUNTS
Date
Account Titles and Explanation
Debit
Credit
4-1-19
SHOW LIST OF ACCOUNTS
Date
Account Titles and Explanation
Debit
Credit
12-31-19
Korman Company has the following securities in its portfolio of equity securities on December 31, 2018:Cost Fair Value 5,000 shares of Thomas Corp., Common $149,000 $138,000 10,000 shares of Gant, Common 180,000 187,000 $329,000 $325,000
All of the securities had been purchased in 2018. In 2019, Korman completed the following securities transactions:
March 1 Sold 5,000 shares of Thomas Corp., Common @ $30.80 less fees of $1,500. April 1 Bought 580 shares of Werth Stores, Common @ $43 plus fees of $500.
The Korman Company portfolio ofequity securities appeared as follows on December 31, 2019:
Cost Fair Value 10,000 shares of Gant, Common $180,000 $190,000 580 shares of Werth Stores, Common 25,440 23,540 $205,440 $213,540
Explanation / Answer
Date Account Titles and Explanation Debit Credit
12-31-18 unrealized holding gain or loss - income 4000
Securities fair value adjustment (trading) 4000
(329000-325000)=4000
Date Account Titles and Explanation Debit Credit
3-1-19 cash (5000*30.80)-1500 152500
Loss on sale of securities 1500
Trading securities 154000
Date Account Titles and Explanation Debit Credit
4-1-19 Trading securities 25440
Cash (580*43)+500 25440
Date Account Titles and Explanation Debit Credit
12-31-19 Securities fair value adjustment (trading) 8100
unrealized holding gain or loss - income 8100
(213540-205440) = 8100
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