Counting Services Inc. has the following portfolio of trading equity securities at 12/31/17. All securities were...

Counting Services Inc. has the following portfolio of trading equity securities at 12/31/17. All securities were purchased during 2017.

Symbol # shares Total Cost Market Value

AAPL 1000 $102,000 $107,000

BMX 2000 $47,000 $41,000

GNC 3000 $64,000 $87,000

Total $213,000

• Prepare the adjustment necessary at 12/31/17.

• On February 12, 2018, Counting Services sells 1,000 shares of AAPL for $115,000. Prepare the journal entry.

• The total cost of the two remaining securities is $111,000 and the market value is $130,000 at March 31, 2018. Prepare the adjusting entry.

Expert Solution

Symbol	# Shares	Total cost	Market value
AAPL	1,000	$102,000	$107,000
BMX	2,000	$47,000	$41,000
GNC	3,000	$64,000	$87,000
Total		$213,000	$235,000

A	Adjustment entry on 12/31/2017 Unrealised Gain	Debit	Credit
	Investment in securities	$22,000
	To unrealised gain on securities ($235,000-$213,000)		$22,000

B	On Feb 12, 2018
	Cash a/c	$115,000
	To Investment in securities		$115,000

C	On March 31, 2018 - Unrealised Gain
	Investment in securities	$2,000
	To unrealised gain on securities ($41,000+87,000-$130,,000)		$2,000

ekkarill92 answered 2 years ago

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