Answer:
December 31, 2020, fair value adjustment
Dr Investment in Muninger stocks 333
Cr Unrealized gain - Investment in Muninger stocks 333
December 31, 2020, fair value adjustment
Dr Unrealized loss - Investment in Tatman stocks 700
Cr Investment in Tatman stocks 700
Explanation:
Feb. 1 Purchased 500 shares of Muninger common stock for $27,500.
Dr Investment in Muninger stocks 27,500
Cr Cash 27,500
Mar. 1 Purchased 700 shares of Tatman common stock for $17,500.
Dr Investment in Tatman stocks 17,500
Cr Cash 17,500
Apr. 1 Purchased 40 $1,050, 6% Yoakem bonds for $42,000. Interest is payable semiannually on April 1 and October 1.
Dr Investment in Yoakem bonds 42,000
Cr Cash 42,000
July 1 Received a cash dividend of $0.50 per share on the Muninger common stock.
Dr Cash 250
Cr Dividend revenue 250
Aug. 1 Sold 167 shares of Muninger common stock at $65 per share.
Dr Cash 10,855
Cr Investment in Muninger stocks 9,185
Cr Gain on sale 1,670
Sept. 1 Received a $1 per share cash dividend on the Tatman common stock.
Dr Cash 700
Cr Dividend revenue 700
Oct. 1 Received the semiannual interest on the Yoakem bonds.
Dr Cash 1,260
Cr Interest revenue 1,260
Oct. 1 Sold the Yoakem bonds for $41,000.
Dr Cash 41,000
Dr Loss on sale 1,000
Cr Investment in Yoakem bonds 42,000
At December 31, the fair value of the Muninger common stock was $56 per share. The fair value of the Tatman common stock was $24 per share.
