Question

Problem 17-05 (Part Level Submission)

Swifty Company has the following securities in its investment portfolio on December 31, 2020 (all securities were purchased in 2020): (1) 3,300 shares of Anderson Co. common stock which cost $62,700, (2) 9,200 shares of Munter Ltd. common stock which cost $515,200, and (3) 5,500 shares of King Company preferred stock which cost $231,000. The Fair Value Adjustment account shows a credit of $9,600 at the end of 2020.

In 2021, Swifty completed the following securities transactions.

1.		On January 15, sold 3,300 shares of Anderson’s common stock at $20 per share less fees of $1,960.
2.		On April 17, purchased 1,100 shares of Castle’s common stock at $32 per share plus fees of $2,030.

On December 31, 2021, the market prices per share of these securities were Munter $64, King $40, and Castle $24. In addition, the accounting supervisor of Swifty told you that, even though all these securities have readily determinable fair values, Swifty will not actively trade these securities because the top management intends to hold them for more than one year.

A.

Prepare the entry for the security sale on January 15, 2021. (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
Jan. 15, 2021	Cash	64,040
	Gain on Sale of Investments		1,340
	Equity Investments		62,700

B.

Prepare the journal entry to record the security purchase on April 17, 2021. (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
Apr. 17, 2021	Equity Investments	37,230
	Cash		37,230

****NEED HELP WITH PART C****

C.

Compute the unrealized gains or losses.

Unrealized Gain or Loss

$ ????

Prepare the adjusting entry for Swifty on December 31, 2021. (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
Dec. 31, 2021	?	?	?
	?	?	?

Answer 1