On December 21, 2025, Metlock Company provided you with the following information regarding its equity investments. December 31, 2025 Investments Cost Fair Value Unrealized Gain (Loss) Clemson Corp. stock $21,600 $20,700 $(900) Colorado Co. stock 10,700 9,600 (1,100) Buffaloes Co. stock 21,600 22.200 600 Total of portfolio $53,900 $52,500 (1.400) Previous fair value adjustment balance 0 Fair value adjustment-Cr $(1,400) During 2026, Colorado Co. stock was sold for $10,140. The fair value of the stock on December 31, 2026, was Clemson Corp. stock- $20,790; Buffaloes Co. stock-$22,110. 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

On December 21, 2025, Metlock Company provided you with the following information regarding its equity investments. December 31, 2025 Investments Cost Fair Value Unrealized Gain (Loss) Clemson Corp. stock $21,600 $20,700 $(900) Colorado Co. stock 10,700 9,600 (1,100) Buffaloes Co. stock 21,600 22.200 600 Total of portfolio $53,900 $52,500 (1.400) Previous fair value adjustment balance 0 Fair value adjustment-Cr $(1,400) During 2026, Colorado Co. stock was sold for $10,140. The fair value of the stock on December 31, 2026, was Clemson Corp. stock- $20,790; Buffaloes Co. stock-$22,110. 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

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...

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nit.9
On December 21, 2020, Marin Company provided you with the following information regarding its equity investments. December 31, 2020 Investments (Trading) Cost Fair Value Unrealized Gain (Loss) Clemson Corp. stock $19,900 $18,900 $(1,000) Colorado Co. stock 10,300 9,200 (1,100) Buffaloes Co. stock 19,900 20,460 560 Total of portfolio $50,100 $48,560 (1,540) Previous fair value adjustment balance 0 Fair value adjustment-Cr. $(1,540) During 2021, Colorado Co. stock was sold for $9.750. The fair value of the stock on December 31, 2021, was Clemson Corp. stock- $19,000; Buffaloes Co. stock-$20.350. None of the equity investments result in significant influence. (a) Prepare the adjusting journal entry needed on December 31, 2020. (b) Prepare the journal entry to record the sale of the Colorado Co. stock during 2021. (c) 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…
On December 21, 2020, Sweet Company provided you with the following information regarding its equity investments. December 31, 2020 Investments (Trading) Cost Fair Value Unrealized Gain (Loss) Clemson Corp. stock $19,300 $18,200 $(1,100 ) Colorado Co. stock 10,400 9,400 (1,000 ) Buffaloes Co. stock 19,300 19,930 630 Total of portfolio $49,000 $47,530 (1,470 ) Previous fair value adjustment balance 0 Fair value adjustment—Cr. $(1,470 ) During 2021, Colorado Co. stock was sold for $9,910. The fair value of the stock on December 31, 2021, was Clemson Corp. stock—$18,310; Buffaloes Co. stock—$19,830. None of the equity investments result in significant influence. (a) Prepare the adjusting journal entry needed on December 31, 2020. (b) Prepare the journal entry to record the sale of the Colorado Co. stock during 2021. (c) Prepare the adjusting journal entry needed on December 31,…
On December 21, 2020, Pearl Company provided you with the following information regarding its equity investments. December 31, 2020 Investments (Trading) Cost Fair Value Unrealized Gain (Loss) Clemson Corp. stock $21,300 $20,300 $(1,000 ) Colorado Co. stock 9,100 8,200 (900 ) Buffaloes Co. stock 21,300 21,860 560 Total of portfolio $51,700 $50,360 (1,340 ) Previous fair value adjustment balance 0 Fair value adjustment—Cr. $(1,340 ) During 2021, Colorado Co. stock was sold for $8,650. The fair value of the stock on December 31, 2021, was Clemson Corp. stock—$20,390; Buffaloes Co. stock—$21,770. None of the equity investments result in significant influence. (a) Prepare the adjusting journal entry needed on December 31, 2020. (b) Prepare the journal entry to record the sale of the Colorado Co. stock during 2021. (c) Prepare the adjusting journal entry needed on December 31, 2021.…
On December 21, 2020, Grouper Company provided you with the following information regarding its equity investments. December 31, 2020 Investments (Trading) Cost Fair Value Unrealized Gain (Loss) Clemson Corp. stock $21,600 $20,700 $(900 ) Colorado Co. stock 10,700 9,600 (1,100 ) Buffaloes Co. stock 21,600 22,200 600 Total of portfolio $53,900 $52,500 (1,400 ) Previous fair value adjustment balance 0 Fair value adjustment—Cr. $(1,400 ) During 2021, Colorado Co. stock was sold for $10,140. The fair value of the stock on December 31, 2021, was Clemson Corp. stock—$20,790; Buffaloes Co. stock—$22,110. None of the equity investments result in significant influence. (a) Prepare the adjusting journal entry needed on December 31, 2020. (b) Prepare the journal entry to record the sale of the Colorado Co. stock during 2021. (c) Prepare the adjusting journal entry needed on December 31,…
hrl.3
On December 21, 2020, Bucky Katt Company provided you with the following information regarding its equity investments. December 31, 2020 Investments Cost Fair Value Unrealized Gain (Loss) Clemson Corp. stock $20,000 $19,000 $(1,000) Colorado Co. stock 10,000 9,000 (1,000) Buffaloes Co. stock 20,000 20,600 600 Total of portfolio $50,000 $48,600 (1,400) Previous fair value adjustment balance –0– Fair value adjustment—Cr. $(1,400) During 2021, Colorado Co. stock was sold for $9,400. The fair value of the stock on December 31, 2021, was Clemson Corp. stock—$19,100; Buffaloes Co. stock—$20,500. None of the equity investments result in significant influence. Instructions a. Prepare the adjusting journal entry needed on December 31, 2020. b. Prepare the journal entry to record the sale of the Colorado Co. stock during 2021. c. Prepare the adjusting journal entry needed on December 31, 2021.
2
Please help solve (b).
On December 21, 2020, Zurich Company provided you with the following information regarding its trading investments. December 31, 2020 Investments (Trading) Cost Fair Value Unrealized Gain (Loss) Stargate Corp. shares $20,000 $19,000 $(1,000) Carolina Co. shares 10,000 9,000 (1,000) Vectorman Co. shares 20,000 20,600 600 Total of portfolio $50,000 $48,600 $(1,400) Previous fair value adjustment balance –0– Fair value adjustment—Cr. $(1,400) During 2021, Carolina Co. shares were sold for $9,500. The fair value of the shares on December 31, 2021, was Stargate Corp. shares—$19,300; Vectorman Co. shares—$20,500. Instructions a. Prepare the adjusting journal entry needed on December 31, 2020. b. Prepare the journal entry to record the sale of the Carolina Co. shares during 2021. c. Prepare the adjusting journal entry needed on December 31, 2021.
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…
On December 21, 2020, Buffalo Company provided you with the following information regarding its equity investments. December 31, 2020 Investments (Trading) Cost Fair Value Unrealized Gain (Loss) Clemson Corp. stock $ 19,200 $ 18,300 $( 900 ) Colorado Co. stock 9,500 8,600 ( 900 ) Buffaloes Co. stock 19,200 19,800 600 Total of portfolio $ 47,900 $ 46,700 ( 1,200 ) Previous fair value adjustment balance 0 Fair value adjustment—Cr. $( 1,200 ) During 2021, Colorado Co. stock was sold for $ 9,150. The fair value of the stock on December 31, 2021, was Clemson Corp. stock—$ 18,400; Buffaloes Co. stock—$ 19,690. None of the equity investments result in significant influence. (a) Prepare the adjusting journal entry needed on December 31, 2020. (b) Prepare the journal entry to record the sale of the Colorado Co. stock during 2021. (c) Prepare the adjusting journal entry needed on…