E17-7(Trading Securities Entries) On December 21, 2013, Bucky Katt
Company provided you with the following information regarding its trading
securities.
During 2014, Colorado Company stock was
sold for $9,400. The fair value of the stock on December 31, 2014, was Clemson
Corp. stock—$19,100; Buffaloes Co. stock—$20,500.
Instructions
(a)Prepare the adjusting journal entry
needed on December 31, 2013.
(b) Prepare the journal entry to record the
sale of the Colorado Company stock during 2014.
(c)Prepare the adjusting journal entry needed
on December 31, 2014.
E17-9(Available-for-Sale Securities Entries and Financial Statement
Presentation) At December 31, 2013, the available-for-sale equity portfolio for
Steffi Graf, Inc. is as follows.
On January 20, 2014, Steffi Graf, Inc. sold
security A for $15,100. The sale proceeds are net of brokerage fees.
Instructions
(a)Prepare
the adjusting entry at December 31, 2013, to report the portfolio at fair
value.
(b) Show the balance sheet presentation of the
investment-related accounts at December 31, 2013.
(Ignore
notes presentation.) (c) Prepare
the journal entry for the 2014 sale of security A
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 portfolio
