Kenseth company | Accounting homework help

 

Kenseth Company has the following securities in its trading port- folio of securities on December 31, 2013.

Investments (Trading)

1,500 shares of Gordon, Inc., Common 5,000 shares of Wallace Corp., Common 400 shares of Martin, Inc., Preferred

Cost

$ 73,500 180,000 60,000

$313,500

Fair Value

$ 69,000 175,000 61,600

$305,600

All of the securities were purchased in 2013. In 2014, Kenseth 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

Kenseth Company’s portfolio of trading securities appeared as follows on December 31, 2014.

Investments (Trading) Cost

5,000 shares of Wallace Corp., Common $180,000 700 shares of Earnhart Corp., Common 53,800 400 shares of Martin, Inc., Preferred 60,000

Fair Value

$175,000 50,400 58,000

$283,400

Instructions

Prepare the general journal entries for Kenseth Company for:

(a) The 2013 adjusting entry. (b) The sale of the Gordon stock. (c) The purchase of the Earnhart stock. (d) The 2014 adjusting entry for the trading portfoli

 

 

 

"We Offer Paper Writing Services on all Disciplines, Make an Order Now and we will be Glad to Help"