December 31, 2017 Cost Fair Value Unrealized Gain (Loss) Investments Clemson Corp. stock Colorado Co. stock $20,000 $19,000 10,000 20,000 $(1,000) (1,000) 600 9,000 Buffaloes Co. stock 20,600 $48,600 Total of portfolio Previous fair value adjustment balance Fair value adjustment-Cr. $50,000 (1,400) -0- $(1,400)
December 31, 2017 Cost Fair Value Unrealized Gain (Loss) Investments Clemson Corp. stock Colorado Co. stock $20,000 $19,000 10,000 20,000 $(1,000) (1,000) 600 9,000 Buffaloes Co. stock 20,600 $48,600 Total of portfolio Previous fair value adjustment balance Fair value adjustment-Cr. $50,000 (1,400) -0- $(1,400)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
(Equity Securities Entries) On December 21, 2017, Bucky Katt Company provided you with the following information regarding its equity investments.
Check below image for the investment information.
During 2018, Colorado Co. stock was sold for $9,400. The fair value of the stock on December 31, 2018, was Clemson Corp. stock—$19,100; Buffaloes Co. stock—$20,500. None of the equity investments result in significant influence.
Instructions
(a) Prepare the
(b) Prepare the journal entry to record the sale of the Colorado Co. stock during 2018.
(c) Prepare the adjusting journal entry needed on December 31, 2018.
Transcribed Image Text:December 31, 2017
Cost
Fair Value
Unrealized Gain (Loss)
Investments
Clemson Corp. stock
Colorado Co. stock
$20,000
$19,000
10,000
20,000
$(1,000)
(1,000)
600
9,000
Buffaloes Co. stock
20,600
$48,600
Total of portfolio
Previous fair value adjustment balance
Fair value adjustment-Cr.
$50,000
(1,400)
-0-
$(1,400)
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