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All of the securities were purchased in 2025. In 2026, Indigo completed the following securities transactions. March 1 April 1 Sold the 1,500 shares of Gordon, Inc., common, @ $45 less fees of $1,200. Bought 700 shares of Earnhart Corp., common, @ $75 plus fees of $1,200.

All of the securities were purchased in 2025. In 2026, Indigo completed the following securities transactions. March 1 April 1 Sold the 1,500 shares of Gordon, Inc., common, @ $45 less fees of $1,200. Bought 700 shares of Earnhart Corp., common, @ $75 plus fees of $1,200.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Current Attempt in Progress Indigo Company has the following securities in its portfolio on December 31, 2025. None of these investments are accounted for under the equity method. Investments 1,500 shares of Gordon, Inc., common 5,000 shares of Wallace Corp., common 400 shares of Martin, Inc., preferred March 1 April 1 Cost $75,000 185,000 62,000 $322,000 All of the securities were purchased in 2025. In 2026, Indigo completed the following securities transactions. Investments 5,000 shares of Wallace Corp., common 700 shares of Earnhart Corp., common 400 shares of Martin, Inc., preferred Sold the 1,500 shares of Gordon, Inc., common, @ $45 less fees of $1,200. Bought 700 shares of Earnhart Corp., common, @ $75 plus fees of $1,200. Indigo's portfolio of equity securities appeared as follows on December 31, 2026. Cost No. Account Titles and Explanation $185,000 53,700 62,000 Fair Value $70,300 180,100 63,800 $300,700 $314,200 (a) The 2025 adjusting entry. (b) The sale of the Gordon stock. (c) The purchase of the Earnhart stock. (d) The 2026 adjusting entry for the portfolio. Prepare the general journal entries for Indigo Company for: Fair Value $180,100 50,000 60,200 $290,300 (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.) Debit Credit
Transcribed Image Text:Current Attempt in Progress Indigo Company has the following securities in its portfolio on December 31, 2025. None of these investments are accounted for under the equity method. Investments 1,500 shares of Gordon, Inc., common 5,000 shares of Wallace Corp., common 400 shares of Martin, Inc., preferred March 1 April 1 Cost $75,000 185,000 62,000 $322,000 All of the securities were purchased in 2025. In 2026, Indigo completed the following securities transactions. Investments 5,000 shares of Wallace Corp., common 700 shares of Earnhart Corp., common 400 shares of Martin, Inc., preferred Sold the 1,500 shares of Gordon, Inc., common, @ $45 less fees of $1,200. Bought 700 shares of Earnhart Corp., common, @ $75 plus fees of $1,200. Indigo's portfolio of equity securities appeared as follows on December 31, 2026. Cost No. Account Titles and Explanation $185,000 53,700 62,000 Fair Value $70,300 180,100 63,800 $300,700 $314,200 (a) The 2025 adjusting entry. (b) The sale of the Gordon stock. (c) The purchase of the Earnhart stock. (d) The 2026 adjusting entry for the portfolio. Prepare the general journal entries for Indigo Company for: Fair Value $180,100 50,000 60,200 $290,300 (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.) Debit Credit
(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.) No. Account Titles and Explanation (a) (b) (c) (d) eTextbook and Media Debit Credit
Transcribed Image Text:(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.) No. Account Titles and Explanation (a) (b) (c) (d) eTextbook and Media Debit Credit
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