On December 21, 2020, Vaughn Company provided you with the following information regarding its equity investments. Securities Cost Fair Value Unrealized Gain (Loss) SC Corp. stock $43,300 39,520 $(3,780 ) True Co. stock 48,800 55,390 6,590 Plus, Inc. stock 30,200 29,882 (318 ) Total of portfolio $122,300 $124,792 2,492 Previous fair value adjustment balance -0- Fair value adjustment – Dr. $2,492 During 2021, the Plus, Inc. stock was sold for $30,750. The fair value of the stock on December 31, 2021, was: SC Corp. stock—$40,070; True Co. stock—$51,080. None of the equity investments result in significant influence. Prepare the adjusting journal entry needed on December 31, 2020. (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, 2020 enter an account title for the journal entry on December 31, 2017 enter a debit amount enter a credit amount enter an account title for the journal entry on December 31, 2017 enter a debit amount enter a credit amount Prepare the journal entry to record the sale of the Plus, Inc. stock during 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 During 2021 enter an account title for the journal entry during 2018 enter a debit amount enter a credit amount enter an account title for the journal entry during 2018 enter a debit amount enter a credit amount enter an account title for the journal entry during 2018 enter a debit amount enter a credit amount Prepare the adjusting journal entry needed 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 enter an account title for the journal entry on December 31, 2018 enter a debit amount enter a credit amount enter an account title for the journal entry on December 31, 2018 enter a debit amount enter a credit amount

On December 21, 2020, Vaughn Company provided you with the following information regarding its equity investments. Securities Cost Fair Value Unrealized Gain (Loss) SC Corp. stock $43,300 39,520 $(3,780 ) True Co. stock 48,800 55,390 6,590 Plus, Inc. stock 30,200 29,882 (318 ) Total of portfolio $122,300 $124,792 2,492 Previous fair value adjustment balance -0- Fair value adjustment – Dr. $2,492 During 2021, the Plus, Inc. stock was sold for $30,750. The fair value of the stock on December 31, 2021, was: SC Corp. stock—$40,070; True Co. stock—$51,080. None of the equity investments result in significant influence. Prepare the adjusting journal entry needed on December 31, 2020. (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, 2020 enter an account title for the journal entry on December 31, 2017 enter a debit amount enter a credit amount enter an account title for the journal entry on December 31, 2017 enter a debit amount enter a credit amount Prepare the journal entry to record the sale of the Plus, Inc. stock during 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 During 2021 enter an account title for the journal entry during 2018 enter a debit amount enter a credit amount enter an account title for the journal entry during 2018 enter a debit amount enter a credit amount enter an account title for the journal entry during 2018 enter a debit amount enter a credit amount Prepare the adjusting journal entry needed 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 enter an account title for the journal entry on December 31, 2018 enter a debit amount enter a credit amount enter an account title for the journal entry on December 31, 2018 enter a debit amount enter a credit amount

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

On December 21, 2020, Vaughn Company provided you with the following information regarding its equity investments.

Securities	Cost	Fair Value	Unrealized Gain (Loss)
SC Corp. stock	$43,300	39,520	$(3,780	)
True Co. stock	48,800	55,390	6,590
Plus, Inc. stock	30,200	29,882	(318	)
Total of portfolio	$122,300	$124,792	2,492
Previous fair value adjustment balance			-0-
Fair value adjustment – Dr.			$2,492

During 2021, the Plus, Inc. stock was sold for $30,750. The fair value of the stock on December 31, 2021, was: SC Corp. stock—$40,070; True Co. stock—$51,080. None of the equity investments result in significant influence.

Prepare the adjusting journal entry needed on December 31, 2020. (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, 2020	enter an account title for the journal entry on December 31, 2017	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31, 2017	enter a debit amount	enter a credit amount

Prepare the journal entry to record the sale of the Plus, Inc. stock during 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
During 2021	enter an account title for the journal entry during 2018	enter a debit amount	enter a credit amount
	enter an account title for the journal entry during 2018	enter a debit amount	enter a credit amount
	enter an account title for the journal entry during 2018	enter a debit amount	enter a credit amount

Prepare the adjusting journal entry needed 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	enter an account title for the journal entry on December 31, 2018	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31, 2018	enter a debit amount	enter a credit amount

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