Reference no: EM13373146

Trading equity securities.

Korman Company has the following securities in its portfolio of trading equity securities on December 31, 2010:

                                                                                                            Cost                    Fair Value

5,000 shares of Thomas Corp., Common                                  $155,000               $139,000

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

                                                                                                         $337,000               $329,000

All of the securities had been purchased in 2010. In 2011, 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 equity securities appeared as follows on December 31, 2011:

                                                                                                            Cost                    Fair Value

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

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

                                                                                                         $209,550               $221,000

Instructions

Prepare the general journal entries for Korman Company for:

(a)     the 2010 adjusting entry.

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

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

(d)     the 2011 adjusting entry.