Could you tel me what is wrong with the bottom Bolded portion? McElroy Company h
ID: 2601295 • Letter: C
Question
Could you tel me what is wrong with the bottom Bolded portion?
McElroy Company has the following portfolio of investment securities at September 30, 2014, its last reporting date.
Trading Securities
Cost
Fair Value
Horton, Inc. common (5,430 shares) $228,060 $213,160
Monty, Inc. preferred (4,340 shares) 211,770 218,880
Oakwood Corp. common (1,410 shares) 928,530 927,260
On October 10, 2014, the Horton shares were sold at a price of $55 per share. In addition, 2,680 shares of Patriot common stock were acquired at $56 per share on November 2, 2014. The December 31, 2014, fair values were Monty $185,540, Patriot $118,520, and the Oakwood common $943,160. All the securities are classified as trading.
(a)
Prepare the journal entries to record the sale, purchase, and adjusting entries related to the trading securities in the last quarter of 2014. (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.)
Date
Account Titles and Explanation
Debit
Credit
Oct. 10, 2014
Entry field with correct answer
Cash
Entry field with correct answer
298650
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Entry field with correct answer
Equity Investments
Entry field with correct answer
Entry field with correct answer
228060
Entry field with correct answer
Gain on Sale of Investments
Entry field with correct answer
Entry field with correct answer
70590
Nov. 2, 2014
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Equity Investments
Entry field with correct answer
150080
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Entry field with correct answer
Cash
Entry field with correct answer
Entry field with correct answer
150080
Dec. 31, 2014
Entry field with incorrect answer
Unrealized Holding Gain or Loss - Equity
Entry field with incorrect answer
197570
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Entry field with correct answer
Fair Value Adjustment
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Entry field with incorrect answer
197570
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Explanation / Answer
Portfolio value on sept 30
Cost
Fair value
Unrealzied gain/Loss
Horton Inc
228060
213160
-14900
Monty Inc
211770
218880
7110
Oakwood corp
928530
927260
-1270
1368360
1359300
-9060
Date
Particulars
Debit
credit
Oct-10
Cash [5430*$55]
298650
Equity investments
228060
Gain on sale of investments
70590
Nov-02
Equity investment [2680*$56]
150080
Cash
150080
Portfolio value on Dec 31
Cost
Fair value
Unrealized gain/Loss
Horton Inc
228060
185540
-42520
Oakwood corp
928530
943160
14630
Patriot
150080
118520
-31560
1156590
1128700
-27890
Previous fair value adjustment
-9060
Fair value adjustment
-36950
Date
Particulars
Debit
credit
Dec-31
Unrealized holding loss -income
36950
Fair Value adjustment trading
36950
Portfolio value on sept 30
Cost
Fair value
Unrealzied gain/Loss
Horton Inc
228060
213160
-14900
Monty Inc
211770
218880
7110
Oakwood corp
928530
927260
-1270
1368360
1359300
-9060
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