Vaughn Company has the following portfolio of investment securities at September 30, 2020, its most recent...

 

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Vaughn Company has the following portfolio of investment securities at September 30, 2020, its most recent reporting date. Investment Securities Horton, Inc. common (4,860 shares) Monty, Inc. preferred (3,700 shares) Oakwood Corp.common (980 shares) Cost Date $204,120 136,900 173,460 On October 10, 2020, the Horton shares were sold at a price of $53 per share. In addition, 2,930 shares of Patriot common stock were acquired at $55 per share on November 2, 2020. The December 31, 2020, fair values were Monty $110,490, Patriot $132,750, and Oakwood $185,570. 0.0 Fair Value $190,060 143,980 172,380 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.) Account Titles and Explanation Debit Credit Vaughn Company has the following portfolio of investment securities at September 30, 2020, its most recent reporting date. Investment Securities Horton, Inc. common (4,860 shares) Monty, Inc. preferred (3,700 shares) Oakwood Corp.common (980 shares) Cost Date $204,120 136,900 173,460 On October 10, 2020, the Horton shares were sold at a price of $53 per share. In addition, 2,930 shares of Patriot common stock were acquired at $55 per share on November 2, 2020. The December 31, 2020, fair values were Monty $110,490, Patriot $132,750, and Oakwood $185,570. 0.0 Fair Value $190,060 143,980 172,380 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.) Account Titles and Explanation Debit Credit

Answer rating: 100% (QA)

Answer Date particulars oct 10 Cash 53X4860 Equity investment Gain on sale at Equity investments 2... View the full answer