Question
Could you tel me what is wrong with the bottom Bolded portion? McElroy Company has the following portfolio of investment securities at September 30, 2014,
Could you tel me what is wrong with the bottom Bolded portion?
McElroy Company has the following portfolio of investment securities at September 30, 2014, its last reporting date.
Trading Securities
Cost
Fair Value
Horton, Inc. common (5,430 shares) $228,060 $213,160
Monty, Inc. preferred (4,340 shares) 211,770 218,880
Oakwood Corp. common (1,410 shares) 928,530 927,260
On October 10, 2014, the Horton shares were sold at a price of $55 per share. In addition, 2,680 shares of Patriot common stock were acquired at $56 per share on November 2, 2014. The December 31, 2014, fair values were Monty $185,540, Patriot $118,520, and the Oakwood common $943,160. All the securities are classified as trading.
(a)
Prepare the journal entries to record the sale, purchase, and adjusting entries related to the trading securities in the last quarter of 2014. (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 0 for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
Oct. 10, 2014
Entry field with correct answer
Cash
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298650
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Equity Investments
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Entry field with correct answer
228060
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Gain on Sale of Investments
Entry field with correct answer
Entry field with correct answer
70590
Nov. 2, 2014
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Equity Investments
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150080
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Cash
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150080
Dec. 31, 2014
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Unrealized Holding Gain or Loss - Equity
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197570
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Fair Value Adjustment
Entry field with correct answer
Entry field with incorrect answer
197570
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Forensic Accounting
Authors: Greg Shields
1st Edition
1727480988, 978-1727480986
