Omar Corporation, which has begun investing in trading securitie

Omar Corporation, which has begun investing in trading securities, engaged in the following transactions:

Jan. 6 Purchased 7,000 shares of Quaker Oats stock, $30 per share.

Feb. 15 Purchased 9,000 shares of EG&G, $22 per share.

At year end on June 30, Quaker Oats was trading at $40 per share, and EG&G was trading at $18 per share.

Record the entries in journal form for the purchases. Then record the necessary year-end adjusting entry. (Include a schedule of the trading portfolio cost and market in the explanation.) Also record the entry for the sale of all the EG&G shares on August 20 for $16 per share. Is the last entry affected by the June 30 adjustment?

A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...