On December 21, 2025, Blue Company provided you with the following information regarding its equity investments. Investments Clemson Corp. stock Colorado Co. stock December 31, 2025 Buffaloes Co. stock Total of portfolio Previous fair value adjustment balance Fair value adjustment-Cr. (a) (b) (c) Cost $20,200 9,900 20,200 $50,300 Fair Value Unrealized Gain (Loss) $(900) (1,000) $19,300 8,900 20,790 $48,990 590 (1,310) 0 $(1,310) During 2026, Colorado Co. stock was sold for $9,410. The fair value of the stock on December 31, 2026, was Clemson Corp.stock- $19,410; Buffaloes Co. stock-$20,700. None of the equity investments result in significant influence. Prepare the adjusting journal entry needed on December 31, 2025. Prepare the journal entry to record the sale of the Colorado Co. stock during 2026. Prepare the adjusting journal entry needed on December 31, 2026. (List all debit entries before credit entries. 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 O for the amounts.)

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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On December 21, 2025, Blue Company provided you with the following information regarding its equity investments.
Investments
Clemson Corp. stock
Colorado Co. stock
Buffaloes Co. stock
December 31, 2025
Total of portfolio
Previous fair value adjustment balance
Fair value adjustment-Cr.
(a)
(b)
(c)
Cost
$20,200
9,900
20,200
$50,300
Fair Value Unrealized Gain (Loss)
$(900)
(1,000)
$19,300
8,900
20,790
$48,990
590
(1,310)
0
$(1,310)
During 2026, Colorado Co. stock was sold for $9,410. The fair value of the stock on December 31, 2026, was Clemson Corp.stock-
$19,410; Buffaloes Co. stock-$20,700. None of the equity investments result in significant influence.
Prepare the adjusting journal entry needed on December 31, 2025.
Prepare the journal entry to record the sale of the Colorado Co. stock during 2026.
Prepare the adjusting journal entry needed on December 31, 2026.
(List all debit entries before credit entries. 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 O for the amounts.)
Transcribed Image Text:On December 21, 2025, Blue Company provided you with the following information regarding its equity investments. Investments Clemson Corp. stock Colorado Co. stock Buffaloes Co. stock December 31, 2025 Total of portfolio Previous fair value adjustment balance Fair value adjustment-Cr. (a) (b) (c) Cost $20,200 9,900 20,200 $50,300 Fair Value Unrealized Gain (Loss) $(900) (1,000) $19,300 8,900 20,790 $48,990 590 (1,310) 0 $(1,310) During 2026, Colorado Co. stock was sold for $9,410. The fair value of the stock on December 31, 2026, was Clemson Corp.stock- $19,410; Buffaloes Co. stock-$20,700. None of the equity investments result in significant influence. Prepare the adjusting journal entry needed on December 31, 2025. Prepare the journal entry to record the sale of the Colorado Co. stock during 2026. Prepare the adjusting journal entry needed on December 31, 2026. (List all debit entries before credit entries. 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 O for the amounts.)
(c) Prepare the adjusting journal entry needed on December 31, 2026.
(List all debit entries before credit entries. 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 O for the amounts.)
Date
eTextbook and Media
ZUZU
Account Titles and Explanation
Debit
Cre
Transcribed Image Text:(c) Prepare the adjusting journal entry needed on December 31, 2026. (List all debit entries before credit entries. 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 O for the amounts.) Date eTextbook and Media ZUZU Account Titles and Explanation Debit Cre
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