Problem 16-05A a-d (Part Level Submission)
The following securities are in Wildhorse Company’s portfolio oflong-term securities at December 31, 2020.
| | Cost |
| 1,200 shares of Willhite Corporation common stock | | $60,000 |
| 1,200 shares of Hutcherson Corporation common stock | | 69,600 |
| 1,000 shares of Downing Corporation preferred stock | | 26,000 |
On December 31, 2020, the total cost of the portfolio equaled totalfair value. Wildhorse had the following transactions related to thesecurities during 2021.
| Jan. | 20 | | Sold all 1,200 shares of Willhite Corporation common stock at$53 per share. |
| 28 | | Purchased 540 shares of $72 par value common stock of LiggettCorporation at $80 per share. |
| 30 | | Received a cash dividend of $1.45 per share on Hutcherson Corp.common stock. |
| Feb. | 8 | | Received cash dividends of $0.40 per share on Downing Corp.preferred stock. |
| 18 | | Sold all 1,000 shares of Downing Corp. preferred stock at $25per share. |
| July | 30 | | Received a cash dividend of $1.00 per share on Hutcherson Corp.common stock. |
| Sept. | 6 | | Purchased an additional 860 shares of $15 par value commonstock of Liggett Corporation at $84 per share. |
| Dec. | 1 | | Received a cash dividend of $1.20 per share on LiggettCorporation common stock. |
At December 31, 2021, the fair values of the securitieswere:
| Hutcherson Corporation common stock | | $62 per share |
| Liggett Corporation common stock | | $74 per share |
Prepare journal entries to record the transactions.(Credit account titles are automatically indented whenamount is entered. Do not indent manually. If no entry is required,select "No entry" for the account titles and enter 0 for theamounts. Record journal entries in the order presented in theproblem.)
