Homework Help is Here – Start Your Trial Now!
Business
Accounting
ent Attempt in Progress Marigold Company has the following securities in its investment portfolio on December 31, 2025 (all securities were purchased in 2025): (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 2025. In 2026, Marigold 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 $33.00 per share plus fees of $1,990. On December 31, 2026, the market prices per share of these securities were Munter $65, King $40, and Castle $24. In addition, the accounting supervisor of Marigold told you that, even though all these securities have readily determinable fair values, Marigold will not actively trade these securities because the top management intends to hold them for more than one year. (a) Your answer is partially correct. Compute the unrealized gains or losses as of December 31, 2026. Unrealized $ Gain Loss Prepare the aujusting entry for Marigold on December 31, 2026. (List debit entry before credit entry. 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 Dec. 31. 2026 Fair Value Adjustment Unrealized Holding Gain or Loss - Equity eTextbook and Media List of Accounts Debit 44910 Credit 44910

ent Attempt in Progress Marigold Company has the following securities in its investment portfolio on December 31, 2025 (all securities were purchased in 2025): (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 2025. In 2026, Marigold 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 $33.00 per share plus fees of $1,990. On December 31, 2026, the market prices per share of these securities were Munter $65, King $40, and Castle $24. In addition, the accounting supervisor of Marigold told you that, even though all these securities have readily determinable fair values, Marigold will not actively trade these securities because the top management intends to hold them for more than one year. (a) Your answer is partially correct. Compute the unrealized gains or losses as of December 31, 2026. Unrealized $ Gain Loss Prepare the aujusting entry for Marigold on December 31, 2026. (List debit entry before credit entry. 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 Dec. 31. 2026 Fair Value Adjustment Unrealized Holding Gain or Loss - Equity eTextbook and Media List of Accounts Debit 44910 Credit 44910

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...
See similar textbooks
icon
Related questions
Question

PLEASE HELP WITH THIS QUESTION. NOTICE, the second account is not unrealized gains or loss. I tried that but it was incorrect. 

ent Attempt in Progress Marigold Company has the following securities in its investment portfolio on December 31, 2025 (all securities were purchased in 2025): (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 2025. In 2026, Marigold 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 $33.00 per share plus fees of $1,990. On December 31, 2026, the market prices per share of these securities were Munter $65, King $40, and Castle $24. In addition, the accounting supervisor of Marigold told you that, even though all these securities have readily determinable fair values, Marigold will not actively trade these securities because the top management intends to hold them for more than one year. (a)
Transcribed Image Text:ent Attempt in Progress Marigold Company has the following securities in its investment portfolio on December 31, 2025 (all securities were purchased in 2025): (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 2025. In 2026, Marigold 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 $33.00 per share plus fees of $1,990. On December 31, 2026, the market prices per share of these securities were Munter $65, King $40, and Castle $24. In addition, the accounting supervisor of Marigold told you that, even though all these securities have readily determinable fair values, Marigold will not actively trade these securities because the top management intends to hold them for more than one year. (a)
Your answer is partially correct. Compute the unrealized gains or losses as of December 31, 2026. Unrealized $ Gain Loss Prepare the aujusting entry for Marigold on December 31, 2026. (List debit entry before credit entry. 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 Dec. 31. 2026 Fair Value Adjustment Unrealized Holding Gain or Loss - Equity eTextbook and Media List of Accounts Debit 44910 Credit 44910
Transcribed Image Text:Your answer is partially correct. Compute the unrealized gains or losses as of December 31, 2026. Unrealized $ Gain Loss Prepare the aujusting entry for Marigold on December 31, 2026. (List debit entry before credit entry. 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 Dec. 31. 2026 Fair Value Adjustment Unrealized Holding Gain or Loss - Equity eTextbook and Media List of Accounts Debit 44910 Credit 44910
Expert Solution
steps

Step by step

Solved in 2 steps with 4 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS