Windsor Corporation made the following cash purchases of securities during $2020,$ which is the first year in which Windsor invested in securities$.$

$1.$ On January $15,$ purchased $9,600$ shares of Sanchez Company$$s common stock at $$33\mathrm{.}50$ per share plus commission $$1,904.$

$2.$ On April $1,$ purchased $4,800$ shares of Vicario Co$.$s common stock at $$52$ per share plus commission $$3,232.$

$3.$ On September $10,$ purchased $6,720$ shares of WTA Co$.$s preferred stock at $$26\mathrm{.}50$ per share plus commission $$4,712.$

On May $20,2020,$ Windsor sold $3,840$ shares of Sanchez Company$$s common stock at a market price of $$35$ per share less brokerage commissions, taxes, and fees of $$3,696.$ The year$-$end fair values per share were Sanchez $$30,$ Vicario $$55,$ and WTA $$28.$ In addition, the chief accountant of Windsor 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.

$($a$)$

Prepare the journal entries to record the above three security purchases. $($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 $0$ for the amounts.$)$

No$.$ Date Account Titles and Explanation Debit Credit

$(1)$ Jan. $15,2020$Apr. $1,2020$Sep. $10,2020$Correct answer Correct answer Correct answer Correct answer

Correct answer Correct answer Correct answer

$(2)$ Jan. $15,2020$Apr. $1,2020$Sep. $10,2020$Correct answer Correct answer Correct answer Correct answer

Correct answer Correct answer Correct answer

$(3)$ Jan. $15,2020$Apr. $1,2020$Sep. $10,2020$Correct answer Correct answer Correct answer Correct answer

Correct answer Correct answer Correct answer

$($b$)$

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 $0$ for the amounts.$)$

Date Account Titles and Explanation Debit Credit

May $20,2020$ Correct answer Correct answer Correct answer

Correct answer Correct answer Correct answer

Correct answer Correct answer Correct answer

$($c$)$

Compute the unrealized gains or losses. $($Round answer to $0$ decimal places, e$.$g$.2,500.)$

Unrealized LossesGainsCorrect answer $ Incorrect answer

Prepare the adjusting entries for Windsor on December $31,2020.($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 $0$ for the amounts.$)$

Date Account Titles and Explanation Debit Credit

Dec. $31,2020$