3. Counting Services Inc. has the following portfolio of trading equity securities at 12/31/18. All securities...

3. Counting Services Inc. has the following portfolio of trading equity securities at 12/31/18. All securities were purchased during 2018.

Symbol # shares Total Cost Market Value

AAPL 1000 $105,000 $125

BMX 2000 $47,000 $51

CAT 1000 $100,000 $105

GNC 3000 $64,000 $21

Total $316,000

Prepare the adjustment necessary at 12/31/18.
On February 12, 2019, Counting Services sells 1,000 shares of AAPL for $125,000. Prepare the journal entry.
The total cost of the three remaining securities is $211,000 and the market value is (see below) at March 31, 2019. Prepare the adjusting entry.

AAPL	BMX	CAT	GNC
$135	$55	$99	$24

Expert Solution

		in $
Date	Accounst Title	Dr	Cr
12/31/2018	Trading Equity securities	79000		1
	Unrealized gain on trading securities-Income	79000

	No. of stock M	Total cost	Market rate per stock N	Total market rate	Differnce
AAPL	1000	105000	125	125000
BMX	2000	47000	51	102000
CAT	1000	100000	105	105000
GNC	3000	64000	21	63000
		316000		395000	79000

Feb 12 2019	Cash	125000
	Trading Equity securities		125000
	(being AAPL sold at Dec 31 2018 same market price hence no further gain/loss)

Mar 31 2019	Trading Equity securities	11000
	Unrealized gain on trading securities-Income	11000


	No. of stock M	Total cost	Market rate per stock N	Total market rate	Differnce
BMX	2000	47000	55	110000
CAT	1000	100000	99	99000
GNC	3000	64000	24	72000
		211000		281000	70000
		Adjusted last yaer (79000-(125000-105000))	59000
		Unrealized gain to be recognized		11000

If any doubt please comment

ekkarill92 answered 1 year ago

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