Korman Company has the following securities in its portfolio of trading securities on December 31, 2012:

Cost Fair Value

5,000 shares of Thomas Corp., Common $159,000 $139,000

10,000 shares of Gant, Common 182,000 190,000

Total $341,000 $329,000

All of the securities had been purchased in 2012. In 2013, Korman completed the following securities transactions:

March 1 Sold 5,000 shares of Thomas Corp., Common @ $31 less fees of $1,500.

April 1 Bought 600 shares of Werth Stores, Common @ $45 plus fees of $550.

The Korman Company portfolio of trading securities appeared as follows on December 31, 2013:

Cost Fair Value

10,000 shares of Gant, Common $182,000 $195,500

600 shares of Werth Stores, Common 27,550 25,500

Total $209,550 $221,000

Instructions

Prepare the general journal entries for Korman Company for:

(a) the 2012 adjusting entry.

(b) the sale of the Thomas Corp. stock.

(c) the purchase of the Werth Stores' stock.

(d) the 2013 adjusting entry.