Exercise 17-11 Marin Corporation made the following cash purchases of securities during 2020, which is the first year in which Marin invested in securities. 1. On January 15, purchased 8,400 shares of Sanchez Company's common stock at $33.50 per share plus commission $1,664. 2. On April 1, purchased 4,200 shares of Vicario Co.'s common stock at $52 per share plus commission $2,830. 3. On September 10, purchased 5,880 shares of WTA Co.'s preferred stock at $26.50 per share plus commission $4,124. On May 20, 2020, Marin sold 3,276 shares of Sanchez Company's common stock at a market price of $35 per share less brokerage commissions, taxes, and fees of $3,234. The year-end fair values per share were Sanchez $30, Vicario $55, and WTA $28. In addition, the chief accountant of Marin 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 o 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 o for the amounts.) No. Date Account Titles and Explanation Debit Credit (1) Jan 15, 2020 Equity Investments 283064 Cash 283064 (2) Apr. 1, 2020 TApr. 1, 2020 Equity Investments Eu 221230 Cash 221230 (3) sep (3) Sep. 10, 2020 TEquity Investments 159944 T Cash 159944 Your answer is correct. Prepare the journal entry for the security sale on May 20. (Round answers to 0 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 o for the amounts.) Debit Credit Date Account Titles and Explanation May 20, 20207 111428 T Equity Investments 110394.96 T Gain on Sale of Investn 1031.04 Your answer is partially correct. Try again. Compute the unrealized gains or losses. (Round answer to 0 decimal places, e.g. 2,500.) Unrealized Losses 1 Unrealized | Losses 1031.04 Prepare the adjusting entries for Marin on December 31, 2020. (Round answers to o 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 o for the amounts.) Debit Credit Date Account Titles and Explanation Dec. 31, 2020 Unrealized Holding Gain or Fair Value Adjustment
