Epps Corporation, which has begun investing in trading securities, engaged in the following transactions: E-5 Jan. 6
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Epps Corporation, which has begun investing in trading securities, engaged in the following transactions: E-5
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Jan. 6 Purchased 7,000 shares of Quaker Oats stock, $30 per share. Feb. 15 Purchased 9,000 shares of EG&G, $22 per share. At year end on June 30, Quaker Oats was trading at $40 per share, and EG&G was trad- ing at $18 per share. Record the entries for the purchases. Then record the necessary year-end adjusting entry. (Include a schedule of the trading portfolio cost and market in the explanation.) Also record the entry for the sale of all the EG&G shares on August 20 for $16 per share. Is the last entry affected by the June 30 adjustment?
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