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Question 6 Bonita Company has the following portfolio of investment securities at September 30, 2020, its...

Question 6

Bonita 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 (5,490 shares) $230,580 $215,850
Monty, Inc. preferred (3,670 shares) 132,120 138,580
Oakwood Corp. common (920 shares) 171,120 170,090


On October 10, 2020, the Horton shares were sold at a price of $56 per share. In addition, 2,750 shares of Patriot common stock were acquired at $57 per share on November 2, 2020. The December 31, 2020, fair values were Monty $104,680, Patriot $124,190, and Oakwood $184,410.

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

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ekkarill92 answered 2 years ago
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