Prepare the journal entries to record the sale, purchase, and adjusting entries related to the equity securities in the last quarter of 2025. None of these investments represents significant influence. The Fair Value Adjustment account has a zero balance prior to September 30, 2025. (List all debit entries before credit entries. 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. Record journal entries in the order presented in the problem)
Prepare the journal entries to record the sale, purchase, and adjusting entries related to the equity securities in the last quarter of 2025. None of these investments represents significant influence. The Fair Value Adjustment account has a zero balance prior to September 30, 2025. (List all debit entries before credit entries. 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. Record journal entries in the order presented in the problem)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Nash Company has the following portfolio of investment securities at September 30, 2025, its most recent reporting date
Investment Securities
Horton, Inc. common (4,630 shares)
Monty, Inc. preferred (3,440 shares)
Oakwood Corp.common (1,090 shares)
Cost
$194,460
123,840
176,580
Fair Value
$178,390
131,070
175,510
On October 10, 2025, the Horton shares were sold at a price of $54 per share. In addition, 3,000 shares of Patriot common stock were
acquired at $56.00 per share on November 2, 2025. The December 31, 2025, fair values were Monty $95,980, Patriot $135,680, and
Oakwood $190,020.
Prepare the journal entries to record the sale, purchase, and adjusting entries related to the equity securities in the last quarter of
2025. None of these investments represents significant influence. The Fair Value Adjustment account has a zero balance prior to
September 30, 2025. (List all debit entries before credit entries. 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. Record journal entries in the
order presented in the problem.)
4
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