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How would the entries in part (a) change if the securities were classified as available-for-sale? (C

How would the entries in part (a) change if the securities were classified as available-for-sale? (C

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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F15.

 

PronghornCompany has the following portfolio of investment securities at September 30, 2020, its last reporting date. Trading Securities Perry, Inc. common (14,000 shares) Platter, Inc. common (5,500 shares) Pokey Corp. preferred (900 shares) Cost $448,000 214,500 78,300 Fair Value $432,700 218,100 72,800 On November 5, 2020, the Platter shares were sold at a price of $41 per share. In addition, 7,600 shares of Patriot common stock were acquired at $36 per share on November 26, 2020. The December 31, 2020, fair values were Perry $427,200, Pokey $74,400, and Patriot common $278,300. All the securities are classified as trading.
Transcribed Image Text:PronghornCompany has the following portfolio of investment securities at September 30, 2020, its last reporting date. Trading Securities Perry, Inc. common (14,000 shares) Platter, Inc. common (5,500 shares) Pokey Corp. preferred (900 shares) Cost $448,000 214,500 78,300 Fair Value $432,700 218,100 72,800 On November 5, 2020, the Platter shares were sold at a price of $41 per share. In addition, 7,600 shares of Patriot common stock were acquired at $36 per share on November 26, 2020. The December 31, 2020, fair values were Perry $427,200, Pokey $74,400, and Patriot common $278,300. All the securities are classified as trading.
(b) How would the entries in part (a) change if the securities were classified as available-for-sale? (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 Nov. 5, 2020 Nov. 26, 2020 Dec. 31, 2020 Account Titles and Explanation Debit Credit
Transcribed Image Text:(b) How would the entries in part (a) change if the securities were classified as available-for-sale? (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 Nov. 5, 2020 Nov. 26, 2020 Dec. 31, 2020 Account Titles and Explanation Debit Credit
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