Gilder Company has the following securities in its portfolio of trading equity securities on 12/31/17:
Cost Fair Value
5,000 shares of Diamond Corp. $146,000 $126,500
10,000 shares of Culver Co. 180,000 185,000
2,000 shares of Barbee Co. 52,000 52,600
$378,000 $364,100
All of the securities had been purchased in 2017.
In 2018, Gilder completed the following securities transactions:
3/1 Sold 5,000 shares of Diamond Corp. @ $26 less fees of $1,500.
7/1 Bought 600 shares of Vogle Stores @ $42 plus fees of $550.
The Gilder Company portfolio of trading equity securities appeared at the end of 2018:
Cost Fair Value
10,000 shares of Culver Co. $180,000 $198,500
2,000 shares of Barbee Co. 52,000 53,000
600 shares of Vogle Stores 25,750 23,800
$257,750 $275,300
Required: Prepare the general journal entries for Gilder Company for:
the 2017 adjusting entry.
the sale of the Diamond Corp. stock and the purchase of the Vogle Stores stock
the 12/31/18 adjusting entry.
Show all work and formulas
| Date | Particulars | Debit | Credit | |
| a) | 31-12-2017 | Unrealized Holding gain or Loss (Income) | 13900 | |
| Securities Fair Value Adjustment | 13900 | |||
| (378000-364100) | ||||
| b) | 01-03-2018 | Cash(5000*$26- 1500) | 128500 | |
| Loss on sales of securities | 1500 | |||
| Trading securities | 130000 | |||
| c) | 01-07-2018 | Trading Securities | 25750 | |
| Cash(600*$42 +550) | 25750 | |||
| d) | 31-12-2018 | Securities Fair Value Adjustment | 17550 | |
| Unrealized Holding gain or Loss (Income) | 17550 | |||
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