McElroy Company has the following portfolio of investment securities at September 30, 2025, its most recent reporting date.

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 $54.50 per share on November 2, 2025. The December 31, 2025, 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 2025. None of these investments represents significant influence. The Fair Value Adjustment account has a zero balance prior to September 30, 2025.

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Investment Securities Horton, Inc. common (5,000 shares) Monty, Inc. preferred (3,500 shares) Oakwood Corp. common (1,000 shares) Cost $215,000 133,000 180,000 Fair Value $200,000 140,000 179,000