Sunland Company has the following portfolio of investment securities at September 30, 2025, its most recent reporting date. Investment Securities Horton, Inc. common (5,120 shares) Monty, Inc. preferred (3,410 shares) Oakwood Corp.common (980 shares) Cost $230,400 132,990 179,340 Fair Value $215,160 139,570 178,380 On October 10, 2025, the Horton shares were sold at a price of $52 per share. In addition, 2,900 shares of Patriot common stock were acquired at $54.00 per share on November 2, 2025. The December 31, 2025, fair values were Monty $104,170, Patriot $123,010, and Oakwood $192,360. Prepare the journal entries to record the sale, purchase, and adjusting entries related to the equity securities in the last quarter of 2025. None of these investments represents significant influence. The Fair Value Adjustment account has a zero balance prior to September 30, 2025. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.)

Sunland Company has the following portfolio of investment securities at September 30, 2025, its most recent reporting date. Investment Securities Horton, Inc. common (5,120 shares) Monty, Inc. preferred (3,410 shares) Oakwood Corp.common (980 shares) Cost $230,400 132,990 179,340 Fair Value $215,160 139,570 178,380 On October 10, 2025, the Horton shares were sold at a price of $52 per share. In addition, 2,900 shares of Patriot common stock were acquired at $54.00 per share on November 2, 2025. The December 31, 2025, fair values were Monty $104,170, Patriot $123,010, and Oakwood $192,360. Prepare the journal entries to record the sale, purchase, and adjusting entries related to the equity securities in the last quarter of 2025. None of these investments represents significant influence. The Fair Value Adjustment account has a zero balance prior to September 30, 2025. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.)

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

Chapter3: Review Of A Company's Accounting System

Section: Chapter Questions

Problem 14GI

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