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Prepare the entry for the security sale on January $15,2026.($List all debit entries before credit entries. 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.$)$

Gain on Sale of Investments

Gain on Sale of Investments

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List of Accounts

On December $31,2026,$ the market prices per share of these securities were Munter $$65,$ King $$40,$ and Castle $$25.$ In addition, the accounting supervisor of Martinez told you that, even though all these securities have readily determinable fair values, Martinez wi not actively trade these securities because the top management intends to hold them for more than one year.

Martinez Company has the following securities in its investment portfolio on December $31,2025($all securities were purchased in $2025)$: $(1)2,800$ shares of Anderson Co$.$ common stock which cost $$50,400,(2)10,800$ shares of Munter Ltd$.$ common stock which cost $$604,800,$ and $(3)6,300$ shares of King Company preferred stock which cost $$270,900.$ The Fair Value Adjustment account shows a credit of $$10,400$ at the end of $2025$

In $2026,$ Martinez completed the following securities transactions.

On January $15,$ sold $2,800$ shares of Anderson's common stock at $$20$ per share less fees of $$2,160.$

On April $17,$ purchased $900$ shares of Castle's common stock at $$33\mathrm{.}00$ per share plus fees of $$2,030.$

nswer is correct

urnal entry to record the security purchase on April $17,2026.($List debit entry before credit entry. Credit s are automatically indented when amount is entered. Do not indent manually. If no entry is required, ntry$"$ for the account titles and enter $0$ for the amounts.$)$

unt Titles and Explanation

Debit

Date Account Titles and Explanation

Dec.

$31,$

Fair Value Adjustment

$2026$

Unrealized Holding Gain or Loss $-$ Equity

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List of Accounts