Cullumber Company has the following securities in its investment portfolio on December 31, 2020 (all securities were purchased in2020): (1) 2,900 shares of Anderson Co. common stock which cost $55,100, (2) 9,100 shares of Munter Ltd. common stock which cost$509,600, and (3) 6,300 shares of King Company preferred stock which cost $270,900. The Fair Value Adjustment account shows acredit of $9,200 at the end of 2020.In 2021, Cullumber completed the following securities transactions.1.2.On January 15, sold 2,900 shares of Anderson's common stock at $23 per share less fees of $2,350.On April 17, purchased 1,000 shares of Castle's common stock at $32 per share plus fees of $2,080.On December 31, 2021, the market prices per share of these securities were Munter $62, King $40, and Castle $21. In addition, theaccounting supervisor of Cullumber told you that, even though all these securities have readily determinable fair values, Cullumberwill not actively trade these securities because the top management intends to hold them for more than one year. Prepare the entry for the security sale on January 15, 2021. (Credit account titles are automatically indented when amountis entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for theamounts.)DateJan. 15,2021Account Titles and ExplanationDebitCredit

Securities refer to financial instruments that can be bought or sold in financial markets, such as…

Cullumber Company has the following securities in its investment portfolio on December 31, 2020 (all securities were purchased in 2020): (1) 2,900 shares of Anderson Co. common stock which cost $55,100, (2) 9,100 shares of Munter Ltd. common stock which cos $509,600, and (3) 6,300 shares of King Company preferred stock which cost $270,900. The Fair Value Adjustment account shows a credit of $9,200 at the end of 2020. In 2021, Cullumber completed the following securities transactions. On January 15, sold 2,900 shares of Anderson's common stock at $23 per share less fees of $2,350. 2. On April 17, purchased 1,000 shares of Castle's common stock at $32 per share plus fees of $2,080. 1. On December 31, 2021, the market prices per share of these securities were Munter $62, King $40, and Castle $21. In addition, the accounting supervisor of Cullumber told you that, even though all these securities have readily determinable fair values, Cullumber will not actively trade these securities because the top management intends to hold them for more than one year.

Cullumber Company has the following securities in its investment portfolio on December 31, 2020 (all securities were purchased in 2020): (1) 2,900 shares of Anderson Co. common stock which cost $55,100, (2) 9,100 shares of Munter Ltd. common stock which cos $509,600, and (3) 6,300 shares of King Company preferred stock which cost $270,900. The Fair Value Adjustment account shows a credit of $9,200 at the end of 2020. In 2021, Cullumber completed the following securities transactions. On January 15, sold 2,900 shares of Anderson's common stock at $23 per share less fees of $2,350. 2. On April 17, purchased 1,000 shares of Castle's common stock at $32 per share plus fees of $2,080. 1. On December 31, 2021, the market prices per share of these securities were Munter $62, King $40, and Castle $21. In addition, the accounting supervisor of Cullumber told you that, even though all these securities have readily determinable fair values, Cullumber will not actively trade these securities because the top management intends to hold them for more than one year.

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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