(L02) (Equity Investments) Kenseth 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 $ 73,500 $ 69,000 5,000 shares of Wallace Corp., common 180,000 175,000 400 shares of Martin, Inc., preferred 60,000 61,600 $313,500 $305,600 All of the securities were purchased in 2017.
In 2018, Kenseth 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 Kenseth’s portfolio of equity securities appeared as follows on December 31, 2018.
Investments Cost Fair Value 5,000 shares of Wallace Corp., common $180,000 $175,000 700 shares of Earnhart Corp., common 53,800 50,400 400 shares of Martin, Inc., preferred 60,000 58,000 $293,800 $283,400 Instructions Prepare the general journal entries for Kenseth 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 portfolio.