1.

Kenseth Company purchased the following securities during 2009:

400 shares of Martin, Inc. stock for a total of $60,000 on July 7, 2009; total voting shares - 7,000 shares

5,000 shares of Wallace Corp. stock for a total of $180,000 on December 29, 2009; total voting shares - 22,000 shares

1,500 shares of Gordon, Inc. stock for a total of $73,500.00 on December 30, 2009; total voting shares - 240,000 shares

(pay attention to the sell date for these securities)

Value of shares on December 31, 2009:

Martin, Inc. - $61,600.00

Wallace Corp. - $175,000.00

(check figure: Investment in Wallace = $218,409.09)

Gordon, Inc. - $69,000.00

(check figure: net value of Martin = $58,000.00)

(check figure: net value of Johnson = $50,400.00)

Total Net Income for 2009:

Martin, Inc. - $174,000.00

Wallace Corp. - $92,000.00

Gordon, Inc. - ($51,450.00)

Sold 1,500 shares of Gordon, Inc. for $45.00 a share on January 3, 2010

Bought 700 shares of Johnson, Inc. stock for $75.00 a share on April 1, 2010; total voting shares - 3,700 shares

	Value of shares on December 31, 2010
	Martin, Inc. - $58,000.00
	Wallace Corp. - $175,000.00
	Johnson, Inc. - $50,400.00
	Total Net Income for 2010:
	Martin, Inc. - ($11,000.00)
	Wallace Corp - $77,000.00
	Johnson, Inc. - $48,000.00
	Record all the applicable general journal entries