McElroy Company has the following portfolio of investment securities at September 30, 2020, its most recent reporting date. Investment Securities Cost Fair Value Horton, Inc. common (5,000 shares) $215,000 $200,000 Monty, Inc. preferred (3,500 shares) 133,000 140,000 Oakwood Corp. common (1,000 shares) 180,000 179,000 On October 10, 2020, the Horton shares were sold at a price of $54 per share. In addition, 3,000 shares of Patriot common stock were acquired at $54.50 per share on November 2, 2020. The December 31, 2020, fair values were Monty $106,000, Patriot $132,000, and Oakwood $193,000. Instructions Prepare the journal entries to record the sale, purchase, and adjusting entries related to the equity securities in the last quarter of 2020.
McElroy Company has the following portfolio of investment securities at September 30, 2020, its most recent reporting date. Investment Securities Cost Fair Value Horton, Inc. common (5,000 shares) $215,000 $200,000 Monty, Inc. preferred (3,500 shares) 133,000 140,000 Oakwood Corp. common (1,000 shares) 180,000 179,000 On October 10, 2020, the Horton shares were sold at a price of $54 per share. In addition, 3,000 shares of Patriot common stock were acquired at $54.50 per share on November 2, 2020. The December 31, 2020, fair values were Monty $106,000, Patriot $132,000, and Oakwood $193,000. Instructions Prepare the journal entries to record the sale, purchase, and adjusting entries related to the equity securities in the last quarter of 2020.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 19P: Anoka Company reported the following selected items in the shareholders equity section of its...
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McElroy Company has the following portfolio of investment securities at September 30, 2020, its most recent reporting date.
| Investment Securities | Cost | Fair Value | ||
| Horton, Inc. common (5,000 shares) | $215,000 | $200,000 | ||
| Monty, Inc. |
133,000 | 140,000 | ||
| Oakwood Corp. common (1,000 shares) | 180,000 | 179,000 |
On October 10, 2020, the Horton shares were sold at a price of $54 per share. In addition, 3,000 shares of Patriot common stock were acquired at $54.50 per share on November 2, 2020. The December 31, 2020, fair values were Monty $106,000, Patriot $132,000, and Oakwood $193,000.
Instructions
Prepare the
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