McElroy Company has the following portfolio of investment securities at September 30, 2020, its most recent reporting date.
| Investment Securities | Cost | Fair Value | ||
| Horton, Inc. common (5,000 shares) | $215,000 | $200,000 | ||
| Monty, Inc. preferred (3,500 shares) | 133,000 | 140,000 | ||
| Oakwood Corp. common (1,000 shares) | 180,000 | 179,000 |
On October 10, 2020, 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, 2020. The December 31, 2020, 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 2020.
