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.


Prepare the journal entries to record the sale, purchase, and adjusting entries related to the equity securities in the last quarter of 2020.

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