Problem 17-6 Pina Company has the following portfolio of investment securities a

Question

Problem 17-6 Pina Company has the following portfolio of investment securities at September 30, 2017, its last reporting date. Trading Securities Cost Horton, Inc. common (5,100 shares) Monty, Inc. preferred (3,160 shares) Oakwood Corp. common (1,030 shares) Fair Value $224,400 $208,680 133,440 167,890 166,810 126,400 On October 10, 2017, the Horton shares were sold at a price of $53 per share. In addition, 3,090 shares of Patriot common stock were acquired at $54 per share on November 2, 2017. The December 31, 2017, fair values were Monty $101,420, Patriot $132,640 and the Oakwood $182,150 Prepare the journal entries to record the sale, purchase, and adjusting entries related to the equity securities in the last quarter of 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manualy. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

working notes:

Unrealised loss=[(224400+126400+167890)-(208680+133440+166810)]-[(166860+126400+167890)-(101420+132640+182150)]

[(518690)-(508930)]-[(461150)-(416210)]

(9760-44940)

35180(loss)

Date Particulars Debit(s) credit(s) 10/10/17 cash(53*5100) 270300 gain on investment 45900 investment horton 224400 11/02/17 investment-patriot(3090*54) 166860 cash 166860 31/12/17 unrealised loss 35180 security fair value adjustment 38310

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