a. Prepare the adjusting entry for Splish Company, if any, necessary at December 31, 2017.

b. Prepare the journal entry for Splish Company to record the sale of the Gordon stock on March 1, 2018. 6

c. Prepare the journal entry for Splish Company to record the purchase of the Earnhart stock on April 1, 2018.

d. Prepare the adjusting entry for Splish Company, if any, necessary at December 31, 2018.

2. (20 pts) Splish Company has the following securities in its portfolio on December 31, 2017. All of the securities were purchased in 2017. None of these investments are accounted for under the equity method. Investments Cost Fair Value 1,500 shares of Gordon, Inc., Common $80,500 $76,300 5,000 shares of Wallace Corp., Common 193,200 188,400 400 shares of Martin, Inc., Preferred 65,900 67,600 $339,600 $332,300 In 2018, Splish completed the following securities transactions. March 1 Sold the 1,500 shares of Gordon, Inc., Common stocks for $66,300. April 1 Bought 700 shares of Earnhart Corp., Common stocks, @ $75 plus fees of $1,300. (Assuming Splish Company cannot exercise significant influence over Earnhart Corp). Splish's portfolio of equity securities appeared as follows on December 31, 2018. Investments 5,000 shares of Wallace Corp., Common 700 shares of Earnhart Corp., Common 400 shares of Martin, Inc., Preferred Cost $193,200 53,800 65,900 $312,900 Fair Value $188,400 50,500 64,100 $303,000