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Trading securities

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.

Solution Summary

The solution explains some journal entries relating to trading securities

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