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

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:

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 adjustingentry.

Transcribed Image Text:

Value Cost 5,000 shares of Thomas Corp., Common 10,000 shares of Gant, Common Fair $139,000 190.000 $155,000 let $337000 Value Cost Fair 10,000 shares of Gant, Common S182,000 $195,500 600 shares of Werth Stores, Common 27,550 25.500