Prepare the journal entries to record the sale and purchase

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Reference no: EM132409546

Question :

Sarasota 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 (4,670 shares)

$205,480

$190,250

Monty, Inc. preferred (3,740 shares)

145,860

153,180

Oakwood Corp. common (950 shares)

161,500

160,470

On October 10, 2020, the Horton shares were sold at a price of $56 per share. In addition, 3,290 shares of Patriot common stock were acquired at $58 per share on November 2, 2020. The December 31, 2020, fair values were Monty $119,590, Patriot $161,370, and Oakwood $173,950.

Prepare the journal entries to record the sale, purchase, and adjusting entries related to the equity securities in the last quarter of 2020.

Reference no: EM132409546

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