On December 21, 2025, Concord Company provided you with the following information regarding its equity investments. December 31, 2025 Investments Cost Fair Value Unrealized Gain (Loss) Clemson Corp. stock $19,900 $19,000 $(900) Colorado Co. stock 10,100 9,100 (1,000) Buffaloes Co. stock 19,900 20,460 560 Total of portfolio $49.900 $48 560 (1.340)
On December 21, 2025, Concord Company provided you with the following information regarding its equity investments. December 31, 2025 Investments Cost Fair Value Unrealized Gain (Loss) Clemson Corp. stock $19,900 $19,000 $(900) Colorado Co. stock 10,100 9,100 (1,000) Buffaloes Co. stock 19,900 20,460 560 Total of portfolio $49.900 $48 560 (1.340)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
hrl.3
Transcribed Image Text:On December 21, 2025, Concord Company provided you with the following information regarding its equity investments.
December 31, 2025
Investments
Cost
Fair Value
Unrealized Gain (Loss)
Clemson Corp. stock
$19,900
$19,000
$(900)
Colorado Co. stock
10,100
9,100
(1,000)
Buffaloes Co. stock
19,900
20,460
560
Total of portfolio
$49,900
$48,560
(1,340)
Previous fair value adjustment balance
0
Fair value adjustment-Cr.
$(1,340)
During 2026, Colorado Co. stock was sold for $9,590. The fair value of the stock on December 31, 2026, was Clemson Corp. stock-
$19,100; Buffaloes Co. stock-$20,360. None of the equity investments result in significant influence.
(a)
Prepare the adjusting journal entry needed on December 31, 2025.
(b)
Prepare the journal entry to record the sale of the Colorado Co. stock during 2026.
(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.)
No.
Date
Account Titles and Explanation
(a)
December 31, 2025
Unrealized Holding Gain or Loss - Income
Fair Value Adjustment
(b)
December 31, 2026
Cash
Loss on Sale of Investments
Equity Investments
(c)
December 31.2027
Fair Value Adjustment
Unrealized Holding Gain or Loss - Equity
Debit
1340
9590
560
1000
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VIEWStep 3: (b) Prepare the journal entry to record the sale of the Colorado Co. stock during 2026:
VIEWStep 4: (c) Prepare the adjusting journal entry needed on December 31,2026:
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