During 2007, Sunbeam Inc. purchased the following trading securities: At the beginning of 2007, Sunbeam had a

Question:

During 2007, Sunbeam Inc. purchased the following trading securities:

At the beginning of 2007, Sunbeam had a zero balance in Market Adjustment€”Trading Securities.
1. What entry would be made at year-end, assuming the preceding values?
2. What entry would be made during 2008, assuming one-half of the Luthor Corp. common stock is sold for $13,000?
3. Give the entry that would be made at the end of 2008, assuming the following situations:
(a) The market value of remaining securities is $41,000.
(b) The market value of remaining securities is $43,500.
(c) The market value of remaining securities is$48,000.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...