Concord Company has the following securities in its investment portfolio on December 31, 2020 (all securities were purchased in2020): (1) 3,100 shares of Anderson Co. common stock which cost $62,000, (2) 10,500 shares of Munter Ltd. common stock whichcost $609,000, and (3) 6,200 shares of King Company preferred stock which cost $266,600. The Fair Value Adjustment account showsa credit of $9,300 at the end of 2020.In 2021, Concord completed the following securities transactions.1.On January 15, sold 3,100 shares of Anderson's common stock at $22 per share less fees of $2,190.2.On April 17, purchased 1,000 shares of Castle's common stock at $33 per share plus fees of $1,990.On December 31, 2021, the market prices per share of these securities were Munter $65, King $40, and Castle $24. In addition, theaccounting supervisor of Concord told you that, even though all these securities have readily determinable fair values, Concord willnot actively trade these securities because the top management intends to hold them for more than one year. Prepare the journal entry to record the security purchase on April 17, 2021. (Credit account titles are automatically indented whenamount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)DateAccount Titles and ExplanationDebitCreditApr. 17,2021

Answered: Concord Company has the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concord Company has the following securities in its investment portfolio on December 31, 2020 (all securities were purchased in
2020): (1) 3,100 shares of Anderson Co. common stock which cost $62,000, (2) 10,500 shares of Munter Ltd. common stock which
cost $609,000, and (3) 6,200 shares of King Company preferred stock which cost $266,600. The Fair Value Adjustment account shows
a credit of $9,300 at the end of 2020.
In 2021, Concord completed the following securities transactions.
1.
On January 15, sold 3,100 shares of Anderson's common stock at $22 per share less fees of $2,190.
2.
On April 17, purchased 1,000 shares of Castle's common stock at $33 per share plus fees of $1,990.
On December 31, 2021, the market prices per share of these securities were Munter $65, King $40, and Castle $24. In addition, the
accounting supervisor of Concord told you that, even though all these securities have readily determinable fair values, Concord will
not actively trade these securities because the top management intends to hold them for more than one year.

Prepare the journal entry to record the security purchase on April 17, 2021. (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
Apr. 17,
2021

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The procedure of entering commercial transactions for the first time in the books of accounts is known as journal entry. Adjusting entries, closing entries, and regular entries are examples of diary entries. Journal entries serve as the foundation for further accounting tasks such as ledger account preparation, trial balances, financial statements, and so on. The initial, meticulous recording of all monetary business transactions is called a journal entry. They are listed in chronological sequence based on the date of the incident. Adjusting entries, closing entries, and regular entries are examples of diary entries.

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