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Trading securities

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XYZ Company has the following securities in its portfolio of trading equity securities on December 31, 2007:
Cost Fair Value
5,000 shares of Nicky Corp., Common $155,000 $139,000
10,000 shares of Max Stores, Common 182,000 190,000
$337,000 $329,000

All of the securities had been purchased in 2007. In 2008, XYZ completed the following securities transactions:
March 1 Sold 5,000 shares of Nicky Corp., Common @ $31 less fees of $1,500.
April 1 Bought 600 shares of Max Stores, Common @ $45 plus fees of $550.
The Austin Company portfolio of trading equity securities appeared as follows on December 31, 2008:

Cost Fair Value
10,000 shares of Nicky Corp., Common $182,000 $195,500
600 shares of Max Stores, Common 27,550 25,500
$209,550 $221,000

Instructions
Prepare the general journal entries for XYZ Company for:
(a) the 2007 adjusting entry.
(b) the sale of the Nicky Corp. stock.
(c) the purchase of the Max Stores stock.
(d) the 2008 adjusting entry.

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Solution Summary

The solution explains some journal entries relating to trading securities

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