Question
Stellar Company has the following portfolio of investment securities at September 30, 2020, its most recent reporting date. Investment Securities Cost Fair Value Horton, Inc.
Stellar 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 (5,310 shares) | $238,950 | $224,500 | ||
| Monty, Inc. preferred (3,700 shares) | 140,600 | 148,130 | ||
| Oakwood Corp. common (990 shares) | 164,340 | 163,400 |
On October 10, 2020, the Horton shares were sold at a price of $52 per share. In addition, 2,720 shares of Patriot common stock were acquired at $54 per share on November 2, 2020. The December 31, 2020, fair values were Monty $113,310, Patriot $115,300, and Oakwood $177,370. Prepare the journal entries to record the sale, purchase, and adjusting entries related to the equity securities in the last quarter of 2020.
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Auditing And Assurance Services
Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Strawser
2nd Edition
0073128244, 9780073128245
