Reference no: EM131719092

Question - Brown Company has the following securities in its portfolio of equity securities on December 31, 2008:    Cost Fair Value 5,000 shares of Thomas Corp., Common $141,000 $128,000 10,000 shares of Gant, Common  174,000  180,000 $315,000 $308,000

All of the securities had been purchased in 2008. In 2009, Brown completed the following securities transactions:

March 1 Sold 5,000 shares of Thomas Corp., Common @ $32 less fees of $1,500. April 1 Bought 600 shares of Werth Stores, Common @ $45 plus fees of $550.

The Brown Company portfolio of equity securities appeared as follows on December 31, 2009:

Cost Fair Value 10,000 shares of Gant, Common $174,000 $195,500 600 shares of Werth Stores, Common    27,550    25,500 $201,550 $221,000

Brown Company does not have significant influence and classifies all these securities as Trading Securities. 

Required: Prepare the general journal entries for Brown Company for: (a) the 2008 adjusting entry. (b) the sale of the Thomas Corp. stock. (c) the purchase of the Werth Stores' stock. (d) the 2009 adjusting entry.