Reference no: EM131734665

Problem - Trading equity securities

Korman Company has the following securities in its portfolio of trading securities on December 31, 2014:

	Cost	Fair Value
5,000 shares of Thomas Corp., Common	$151,000	$139,000
10,000 shares of Gant, Common	182,000	190,000
	$333,000	$329,000

All of the securities had been purchased in 2014. In 2015, 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, 2015:

	Cost	Fair Value
10,000 shares of Gant, Common	$185,000	$195,500
600 shares of Werth Stores, Common	27,550	25,500
	$212,550	$221,000

Instructions - Prepare the general journal entries (with explanations and dates) for Korman Company for:

(a) the 2014 adjusting entry.

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

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

(d) the 2015 adjusting entry.