mentto 2) (Equity Securities Entries) McElroy Company has the following portfolio of invest- ment securities at September 30, 2020, its most recent reporting date. Investment Securities Cost Fair Value Horton, Inc. common (5,000 shares) Monty, Inc. preferred (3,500 shares) Oakwood Corp.common (1,000 shares) $215,000 $200,000 133,000 140,000 180,000 179,000 On October 10, 2020, the Horton shares were sold at a price of $54 per share. In addition, 3,000 shares of Patriot common stock were acquired at $54.50 per share on November 2, 2020. The December 31, 2020, fair values were Monty $106,000, Patriot $132,000, and Oakwood $193,000. Instructions Prepare the journal entries to record the sale, purchase, and adjusting entries related to the equity securities in the last quarter of 2020.
mentto 2) (Equity Securities Entries) McElroy Company has the following portfolio of invest- ment securities at September 30, 2020, its most recent reporting date. Investment Securities Cost Fair Value Horton, Inc. common (5,000 shares) Monty, Inc. preferred (3,500 shares) Oakwood Corp.common (1,000 shares) $215,000 $200,000 133,000 140,000 180,000 179,000 On October 10, 2020, the Horton shares were sold at a price of $54 per share. In addition, 3,000 shares of Patriot common stock were acquired at $54.50 per share on November 2, 2020. The December 31, 2020, fair values were Monty $106,000, Patriot $132,000, and Oakwood $193,000. Instructions Prepare the journal entries to record the sale, purchase, and adjusting entries related to the equity securities in the last quarter of 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:**Equity Securities Entries**
McElroy Company has the following portfolio of investment securities at September 30, 2020, its most recent reporting date:
| Investment Securities | Cost | Fair Value |
|----------------------------------|--------|------------|
| Horton, Inc. common (5,000 shares) | $215,000 | $200,000 |
| Monty, Inc. preferred (3,500 shares) | $133,000 | $140,000 |
| Oakwood Corp. common (1,000 shares) | $180,000 | $179,000 |
On October 10, 2020, the Horton shares were sold at a price of $54 per share. In addition, 3,000 shares of Patriot common stock were acquired at $54.50 per share on November 2, 2020. The December 31, 2020, fair values were Monty $106,000, Patriot $132,000, and Oakwood $193,000.
**Instructions**
Prepare the journal entries to record the sale, purchase, and adjusting entries related to the equity securities in the last quarter of 2020.
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