Coronado 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 $58,900, (2) 9,900 shares of Munter Ltd. common stock which cost $564,300, and (3) 5,600 shares of King Company preferred stock which cost $229,600. The Fair Value Adjustment account shows a credit of $10,500 at the end of 2020. In 2021, Coronado completed the following securities transactions. 1. On January 15, sold 3,100 shares of Anderson's common stock at $23 per share less fees of $2,300. 2. On April 17, purchased 1,000 shares of Castle's common stock at $33 per share plus fees of $2,020. On December 31, 2021, the market prices per share of these securities were Munter $63, King $40, and Castle $20. In addition, the accounting supervisor of Coronado told you that, even though all these securities have readily determinable fair values, Coronado will not actively trade these securities because the top management intends to hold them for more than one year. (a) Prepare the entry for the security sale on January 15, 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 O for the amounts) Debit Date Account Titles and Explanation Jan. 15, 2021 eTextbook and Media List of Accounts Save for Later Credit
Coronado 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 $58,900, (2) 9,900 shares of Munter Ltd. common stock which cost $564,300, and (3) 5,600 shares of King Company preferred stock which cost $229,600. The Fair Value Adjustment account shows a credit of $10,500 at the end of 2020. In 2021, Coronado completed the following securities transactions. 1. On January 15, sold 3,100 shares of Anderson's common stock at $23 per share less fees of $2,300. 2. On April 17, purchased 1,000 shares of Castle's common stock at $33 per share plus fees of $2,020. On December 31, 2021, the market prices per share of these securities were Munter $63, King $40, and Castle $20. In addition, the accounting supervisor of Coronado told you that, even though all these securities have readily determinable fair values, Coronado will not actively trade these securities because the top management intends to hold them for more than one year. (a) Prepare the entry for the security sale on January 15, 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 O for the amounts) Debit Date Account Titles and Explanation Jan. 15, 2021 eTextbook and Media List of Accounts Save for Later Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:(b)
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 O for the amounts)
Date Account Titles and Explanation
Apr.
17.
2021
(c)
eTextbook and Media
List of Accounts
Compute the unrealized gains or losses.
Unrealized
Date Account Titles and Explanation
Dec.
31.
2021
Prepare the adjusting entry for Coronado on December 31, 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.)
eTextbook and Media
Debit
List of Accounts
Credit
Debit
Credit
Transcribed Image Text:Coronado 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 $58,900, (2) 9,900 shares of Munter Ltd. common stock which cost
$564,300, and (3) 5,600 shares of King Company preferred stock which cost $229,600. The Fair Value Adjustment account shows a
credit of $10,500 at the end of 2020.
In 2021, Coronado completed the following securities transactions.
On January 15, sold 3,100 shares of Anderson's common stock at $23 per share less fees of $2,300.
2. On April 17, purchased 1,000 shares of Castle's common stock at $33 per share plus fees of $2,020.
1.
On December 31, 2021, the market prices per share of these securities were Munter $63, King $40, and Castle $20. In addition, the
accounting supervisor of Coronado told you that, even though all these securities have readily determinable fair values, Coronado will
not actively trade these securities because the top management intends to hold them for more than one year.
(a)
Prepare the entry for the security sale on January 15, 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 O for the amounts.)
Date Account Titles and Explanation
Jan.
15,
2021
eTextbook and Media
List of Accounts
Save for Later
Debit
Credit
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