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(Equity Investment-Trading) Ever One Corp. has the following securities in its t

ID: 2473456 • Letter: #

Question

(Equity Investment-Trading) Ever One Corp. has the following securities in its trading port-folio of securities on December 31, 2014. All the securities were purchased in 2014. In 2015, Ever One completed the following securities transactions. Sold 500 shares of Swipor Inc., preferred, $230 less foes of $2,650. Sold the balance of Swiper Inc., preferred. O $220 plus fees of $3,230. Ever One corp's of trading securities appeared as follows on December 31, 2013 Prepare the general journal entries for Ever One corp for: The 2014 adjusting entry The May sale of the Swiper stock. The 2015 adjusting entry for the trading portfollio

Explanation / Answer

A./

2014 ADJUSTING ENTRY

TRAADING INVESTMENTS A/C..............................................DR $18500 ($586600 - $568100)

TO UNREALIZED GAIN ON TRADING INVESTMENT $18500

B./

SALE OF SWIPER STOCK

CASH A/C.....................................................................DR $112350

FEES EXPENSES A/C..................................................DR $2650

UNREALIZED GAIN ON SWIPER INC. STOCK...............DR $6125

REALIZED LOSS ON SWIPER INC. STOCKA/C.............DR $9750

   TO SWIPER INC. SHARES $130875

C./

OCTOBER SALE OF SWIPER STOCK

CASH A/C.....................................................................DR $62770

FEES EXPENSES A/C..................................................DR $3230

UNREALIZED GAIN ON SWIPER INC. STOCK...............DR $3675

REALIZED LOSS ON SWIPER INC. STOCKA/C.............DR $8850

   TO SWIPER INC. SHARES $78525

D./

TRAADING INVESTMENTS A/C..............................................DR $7400 ($375900 - $368500)

TO UNREALIZED GAIN ON TRADING INVESTMENT $7400