Gordon company has the following securities in its portfolio

Gordon Company has the following securities in its portfolio of trading equity securities on December 31, 2007:
Cost Fair Value
5,000 shares of Milner Corp., Common $155,000 $139,000
10,000 shares of Eddy, Common 182,000 190,000
$337,000 $329,000

All of the securities had been purchased in 2007. In 2008, Gordon completed the following securities transactions:
March 1 Sold 5,000 shares of Milner Corp., Common @ $31 less fees of $1,500.
April 1 Bought 600 shares of Yount Stores, Common @ $45 plus fees of $550.
The Gordon Company portfolio of trading equity securities appeared as follows on December 31, 2008:

Cost Fair Value
10,000 shares of Eddy, Common $182,000 $195,500
600 shares of Yount Stores, Common 27,550 25,500
$209,550 $221,000

Instructions
Prepare the general journal entries for Gordon Company for:
(a) the 2007 adjusting entry.
(b) the sale of the Milner Corp. stock.
(c) the purchase of the Yount Stores’ stock.
(d) the 2008 adjusting entry.

Lopez Company began operations in 2006. Since then, it has reported the following gains and losses for its investments in trading securities on the income statement:

2006 2007 2008
Gains (losses) from sale of trading securities $ 15,000 $(20,000) $ 14,000
Unrealized holding losses on valuation of trading securities (25,000) — (30,000)
Unrealized holding gain on valuation of trading securities — 10,000 —

At January 1, 2009, Lopez owned the following trading securities:
Cost
AGH Common (15,000 shares) $450,000
DEL Preferred (2,000 shares) 210,000
Pratt Convertible bonds (100 bonds) 115,000

During 2009, the following events occurred:
1. Sold 5,000 shares of AGH for $170,000.
2. Acquired 1,000 shares of Norton Common for $40 per share. Brokerage commissions totaled $1,000.

At 12/31/09, the fair values for Lopez’s trading securities were:
AGH Common, $28 per share
DEL Preferred, $110 per share
Pratt Bonds, $1,020 per bond
Norton Common, $42 per share

Instructions
(a) Prepare a schedule which shows the balance in the Securities Fair Value Adjustment (Trading) at December 31, 2008 (after the adjusting entry for 2008 is made).
(b) Prepare a schedule which shows the aggregate cost and fair values for Lopez’s trading securities portfolio at 12/31/09.
(c) Prepare the necessary adjusting entry based upon your analysis in (b) above.