Gordon Company has the following securities in its portfolio on December 31, 2014
5,000 shares of Thomas Corp, Common
10,000 shares of Gant, Common
Cost
Fair Value
$151,000
$139,000.
182.000
190.000
$333.000 $329.000
All of the securities had been purchased in 2014. Gordon doesn't have controlling interest nor significant influence over
any of the invested companies. In 2015, Gordon completed the following secunties 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 Gordon Company portfolio of securities appeared as follows on December 31, 2015
10,000 shares of Gant, Common
600 shares of Werth Stores, Common
Cost
Fair Value
$182,000
$195,500
27.550
25,500
$209.550
$221.000
Assuming Gordon doesn't have significant influence over any of the invested companies, prepare the general journal
entries for Gordon Company for
(a) the 2014 adjusting entry (4 points).
(b) the sale of the Thomas Corp stock (4 points).
(c) the purchase of the Werth Stores' stock (4 points)
(d) the 2015 adjusting entry (4 points)
