Question
Korman Company has the following securities in its portfolio of equity securities on December 31, 2018: Cost Fair Value 5,000 shares of Thomas Corp., Common
Korman Company has the following securities in its portfolio of equity securities on December
31, 2018:
Cost Fair Value
5,000 shares of Thomas Corp., Common $151,000 $139,000
10,000 shares of Gant, Common 184,000 190,000
$335,000 $329,000
All of the securities had been purchased in 2018. In 2019, Korman completed the following
securities transactions:
March 1 Sold 5,000 shares of Thomas Corp., Common @ $32 less fees of $1,500.
April 1 Bought 600 shares of Werth Stores, Common @ $45 plus fees of $550.
The Korman Company portfolio of equity securities appeared as follows on December 31, 2019:
Cost Fair Value
10,000 shares of Gant, Common $184,000 $195,500
600 shares of Werth Stores, Common 27,550 25,500
$211,550 $221,000
Instructions
Prepare the general journal entries for Korman Company for:
(a) the 2018 adjusting entry.
(b) the sale of the Thomas Corp. stock.
(c) the purchase of the Werth Stores' stock.
(d) the 2019 adjusting entry
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