Question 5 Monty Company has the following securities in its portfolio on December 31, 2017. None of these investments are accounted for under the equity method Cost $79,000 165,600 59,600 Fair Value $74,500 160,100 61,000 $295,600 Investments 1,500 shares of Gordon, Inc., Common 5,000 shares of Wallace Corp., Common 400 shares of Martin, Inc., Preferred $304,200 All of the securities were purchased in 2017 In 2018, Monty 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 Monty's portfolio of equity securities appeared as follows on December 31, 2018 Fair Value $160,100 50,300 57,700 $279,000 $268,100 Investments Cost 5,000 shares of Wallace Corp., Common 700 shares of Earnhart Corp., Common 400 shares of Martin, Inc., Preferred $165,600 53,800 59,600 Prepare the general journal entries for Monty Company for: (a) (b) (c) (d) The 2017 adjusting entry The sale of the Gordon stock The purchase of the Earnhart stock. 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.) No. Account Titles and Explanation Debit Credit