Exercise 17-11 (Part Level Submission) Cullumber Corporation made the following

Question

Exercise 17-11 (Part Level Submission) Cullumber Corporation made the following cash purchases of securities during 2017, which is the first year in which Cullumber invested in securities. 1. On January 15, purchased 10,150 shares of Sanchez Company's common stock at $46.90 per share plus commission $2,130 2. On April 1, purchased 5,150 shares of Vicario Co.'s common stock at $72.80 per share plus commission $3,520 3. On September 10, purchased 7,150 shares of WTA Co.'s preferred stock at $37.10 per share plus commission $5,060. On May 20, 2017, Cullumber sold 4,150 shares of Sanchez Company's common stock at a market price of $49 per share less brokerage commissions, taxes, and fees of $4,000. The year-end fair values per share were Sanchez $42, Vicario $77, and WTA $39.20. In addition, the chief accountant of Cullumber told you that the corporation plans to hold these securities for the long-term but may sell them in order to earn profits from appreciation in prices. The equity method of accounting is not appropriate for these stock purchases. (a) Prepare the journal entries to record the above three security purchases. (Round answers to O decimal places, e.g. 2,500. 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 o for the amounts.) Account Titles and Explanation Equity Investments Cash No. Date Debit Credit (1) Jan. 15, 2017 (2) Apr. 1, 2017 Equity Investments Cash (3) Sep. 10, 2017Equity Investments Cash

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A B C (A*B)+C Date Company No of Share Purchased Rate per Share Commission Investment 15-Jan Sanchez 10150 46.9 2130 478165 01-Apr Vicario 5150 72.8 3520 378440 10-Sep WTA 7150 37.1 5060 270325 Entry No Date Account Debit Credit 1 15-Jan Equity Investment 478165 Cash 478165 2 01-Apr Equity Investment 378440 Cash 378440 3 10-Sep Equity Investment 270325 Cash 270325

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