Exercise 17-11 Buffalo Corporation made the following cash purchases of securities during 2020, which is the first year in which Buffalo invested in securities. 1. On January 15, purchased 10,200 shares of Sanchez Company's common stock at $33.50 per share plus commission $2.024. 2. On April 1. purchased 5,100 shares of Vicario Co's common stock at $52 per share plus commission $3,433. 3. On September 10, purchased 7,140 shares of WTA Co.'s preferred stock at $26.50 per share plus commission $5,006. On May 20, 2020, Buffalo sold 3,672 shares of Sanchez Company's common stock at a market price of $35 per share less brokerage commissions, taxes, and fees of $3.927. The year-end fair values per share were Sanchez $30, Vicario $55, and WTA $28. In addition, the chief accountant of Buffalo told you that the corporation plans to hold these securities for the long-term but may sell them in order to earn profits from appreciation in prices. The equity method of accounting is not appropriate for these stock purchases. Your answer is correct. Prepare the journal entries to record the above three security purchases. (Round answers to decimal places, e.g. 2,500. 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 for the amounts.) Debit Credit No. 2 Date . 15.2020 Account Titles and explanation Eauity Investments Cash taulty Investment 2920 I call 2020 Cauty Bevesenet Your answer is correct. Prepare the journal entry for the security sale on May 20. (Round answers to decimal places, e.g. 2,500. Credit account titles are automatically indented when amoun is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Debit Credit Date Account Titles and Explanation May 20, 2020 Cash 124593 Equity Investments T Gain on Sale of Invest SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT Your answer is partially correct. Try again. Compute the unrealized gains or losses. (Round answer to o decimal places, e.. 2,500.) CL 41016 Unrealized tosses Prepare the adjusting entries for Buffalo on December 31, 2020. (Round answers to decimal places... 2.500. 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 for the amounts) Compute the unrealized gains or losses. (Round answer to decimal places, e.g. 2,500.) Unrealized tosses 41016 Prepare the adjusting entries for Battalo on December 31, 2020. (Round answers to decimal places, e.. 2,500. 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 for the amounts.) Credit Date Account Titles and Explanation Debit Dec. 31, 2020 Unrealized Holding Gain a 41016 Fair value Adjustment C Click if you would like to show Work for this question: een Show Work 41016
