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Kingbird Company has the following securities in its portfolio on December 31, 2017. None of these investments are accounted for under the equity method Investments
Kingbird 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 1,500 shares of Gordon, Inc., Common 5,000 shares of Wallace Corp., Common 400 shares of Martin, Inc., Preferred $72,500 176,300 63,300 $312,100 Fair Value $68,500 171,700 64,800 $305,000 All of the securities were purchased in 2017 In 2018, Kingbird completed the following securities transactions March 1 Sold the 1,500 shares of Gordon, Inc., Common, $45 less fees of $1,200 April 1Bought 700 shares of Earnhart Corp., Common, @$75 plus fees of $1,300 Kingbird's portfolio of equity securities appeared as follows on December 31, 2018 Investments Cost 5,000 shares of Wallace Corp., Common 700 shares of Earnhart Corp., Common 400 shares of Martin, Inc., Preferred $176,300 53,800 63,300 $293,400 Fair Value $171,700 50,100 61,300 $283,100 Prepare the general journal entries for Kingbird 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. No. Account Titles and Explanation Debit Credit
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