Exercise 17-15

Whispering 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		$76,200		$71,800
5,000 shares of Wallace Corp., Common		197,700		193,000
400 shares of Martin, Inc., Preferred		57,900		59,300
		$331,800		$324,100

All of the securities were purchased in 2017. In 2018, Whispering 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.

Whisperings portfolio of equity securities appeared as follows on December 31, 2018.

Investments		Cost		Fair Value
5,000 shares of Wallace Corp., Common		$197,700		$193,000
700 shares of Earnhart Corp., Common		53,800		50,600
400 shares of Martin, Inc., Preferred		57,900		56,100
		$309,400		$299,700

Prepare the general journal entries for Whispering 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 trading portfolio.

(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)