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Ayayai Company has the following securities in its portfolio on December 31, 2020. None of these...

Ayayai Company has the following securities in its portfolio on December 31, 2020. None of these investments are accounted for under the equity method.

Investments

Cost

Fair Value

1,500 shares of Gordon, Inc., Common $72,500 $68,500
5,000 shares of Wallace Corp., Common 176,300 171,700
400 shares of Martin, Inc., Preferred 63,300 64,800
$312,100 $305,000


All of the securities were purchased in 2020.
In 2021, Ayayai completed the following securities transactions.

March 1 Sold the 1,500 shares of Gordon, Inc., Common, @ $45 less fees of $1,200.
April 1 Bought 700 shares of Earnhart Corp., Common, @ $75 plus fees of $1,300.


Ayayai’s portfolio of equity securities appeared as follows on December 31, 2021.

Investments

Cost

Fair Value

5,000 shares of Wallace Corp., Common $176,300 $171,700
700 shares of Earnhart Corp., Common 53,800 50,100
400 shares of Martin, Inc., Preferred 63,300 61,300
$293,400 $283,100


Prepare the general journal entries for Ayayai Company for:

(a) The 2020 adjusting entry.
(b) The sale of the Gordon stock.
(c) The purchase of the Earnhart stock.
(d) The 2021 adjusting entry for the trading portfolio.

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