(Equity Investments—Trading) Kenseth Company has the following securities in its trading portfolio of securities on December 31, 2006

All of the securities were purchased in 2006.
In 2007, 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 Company’s portfolio of trading securities appeared as follows on December 31, 2007.

Instructions Prepare the general journal entries for Kenseth Company for:

(a) The 2006 adjusting entry.

(b) The sale of the Gordon stock.

(c) The purchase of the Earnhart stock.

(d) The 2007 adjusting entry for the trading portfolio.

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Investments (Trading) 1,500 shares of Gordon, Inc., Common 5,000 shares of Wallace Corp., Common 400 shares of Martin, Inc., Preferred Cost $ 73,500 Fair Value $ 69,000 175,000 180,000 60,000 61,600 $313,500 $305,600