Question

Exercise 17-15 Teal Company has the following securities in its portfolio on December 31, 2017. None of these investments are accounted for under the equity method. Investments Cost Fair Value 1,500 shares of Gordon, Inc., Common $72,600 $68,600 5,000 shares of Wallace Corp., Common 400 shares of Martin, Inc., Preferred 174,800 169,400 57,300 55,600 $303,000 $295,300 All of the securities were purchased in 2017 In 2018, Teal completed the following securities transactions Sold the 1,500 shares of Gordon, Inc., Common, $45 less fees of $1.200. Bought 700 shares of Earnhart Corp., Common, $75 plus fees of $1,300. March 1 April 1 Teal's portfolo of equity securities appeared as follows on December 31, 2018. Investments Fair Value Cost 5,000 shares cof Wallace Corp., Common $174,800 $169,400 700 shares of Earnhart Corp, Common 53,800 50,000 55.600 400 shares of Martin, Inc, Preferred 53,800 $284,200 $273,200 Prepare the general journal entries for Teal Company for The 2017 adjusting entry (a)

Answer 1

solution Debit I Gredit 7700 Account title and Explanation unrealized Holding gain or loss ( 3030002295300) Securitiez fair value adjustment (trading) 7700 66300 cash ( 1500x45) -1200 Loss on sale of Securities Trading securities 6300 42600 Trading Securities (700x75)+(3005 3800 53800 Cash Unrealized Holding gain or loss | 3300 Income. (284200-273200-1700) Securities Fair value adjustment (Trading) 3300