Question
Larkspur Company has the following portfolio of investment securities at September 30, 2020, its most recent reporting date. Investment Securities Cost Fair Value Horton, Inc.
Larkspur 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 (5,180 shares) | $212,380 | $197,710 | ||
Monty, Inc. preferred (3,170 shares) | 123,630 | 131,310 | ||
Oakwood Corp. common (980 shares) | 164,640 | 163,690 |
On October 10, 2020, the Horton shares were sold at a price of $54 per share. In addition, 2,820 shares of Patriot common stock were acquired at $56 per share on November 2, 2020. The December 31, 2020, fair values were Monty $96,040, Patriot $129,060, and Oakwood $178,760. Prepare the journal entries to record the sale, purchase, and adjusting entries related to the equity securities in the last quarter of 2020. (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 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started