(Equity Investments—Trading) Swanson Company has the following securities in its trading portfolio of securities on December 31, 2012.
|
Investments (Trading) |
Cost |
Fair Value |
|
1,500 shares of Parker, Inc., Common |
$ 71,500 |
$ 69,000 |
|
5,000 shares of Beilman Corp., Common |
180,000 |
175,000 |
|
400 shares of Duncan, Inc., Preferred |
60,000 |
61,600 |
|
$311,500 |
$305,600 |
All of the securities were purchased in 2012.
In 2013, Swanson completed the following securities transactions.
|
March 1 |
Sold the 1,500 shares of Parker, Inc., Common, @ $45 less fees of $1,200. |
|
April 1 |
Bought 700 shares of McDowell Corp., Common, @ $75 plus fees of $1,300. |
Swanson Company’s portfolio of trading securities appeared as follows on December 31, 2013.
|
Investments (Trading) |
Cost |
Fair Value |
|
5,000 shares of Beilman Corp., Common |
$180,000 |
$175,000 |
|
700 shares of McDowell Corp., Common |
53,800 |
50,400 |
|
400 shares of Duncan, Inc., Preferred |
60,000 |
58,000 |
|
$293,800 |
$283,400 |
Instructions
Prepare the general journal entries for Swanson Company for:
(a) The 2012 adjusting entry.
(b) The sale of the Parker stock.
(c) The purchase of the McDowell stock.
(d) The 2013 adjusting entry for the trading portfolio.