On December 21, 2025, Pina Company provided you with the following information regarding its equity investments.Clemson Corp. stockColorado Co.stockeInvestmentsBuffaloes Co.stockTotal of portfolioPrevious fair value adjustment balanceFair value adjustment-Cr.TUDecember 31, 20252025Cost$20,40010,90020,400$51,700Fair Value AdjustmentFair ValueAccount Titles and Explanation$19.300Unrealized Holding Gain or Loss -Income9,80020,990During 2026, Colorado Co. stock was sold for $10,350. The fair value of the stock on December 31, 2026, was Clemson Corp.stock-$19,390, Buffaloes Co. stock-$20,900. None of the equity investments result in significant influence.$50,090Unrealized Gain (Loss)$(1,100)(1,100)590(List oll debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Ifno entry is required, select "No Entry for the account titles and enter O for the amounts.)(1,610)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.$(1,610)Debit1610Credit16102

Investment -An asset is something that is purchased with the intention of earning revenue or…

On December 21, 2025, Pina Company provided you with the following information regarding its equity inve December 31, 2025 Cost $20,400 10,900 Investments Clemson Corp. stock Colorado Co.stock Buffaloes Co. stock Total of portfolio Previous fair value adjustment balance Fair value adjustment-Cr. 20,400 $51,700 Fair Value $19,300 9,800 20,990 $50,090 Unrealized Gain (Loss) $(1,100) (1,100) 590 (1,610) 0 $(1,610)

On December 21, 2025, Pina Company provided you with the following information regarding its equity inve December 31, 2025 Cost $20,400 10,900 Investments Clemson Corp. stock Colorado Co.stock Buffaloes Co. stock Total of portfolio Previous fair value adjustment balance Fair value adjustment-Cr. 20,400 $51,700 Fair Value $19,300 9,800 20,990 $50,090 Unrealized Gain (Loss) $(1,100) (1,100) 590 (1,610) 0 $(1,610)

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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Presented below is information related to the purchases of common stock by Bridgeport Company during 2025. Fair Value (at December 31) $68,000 306,000 194,000 $568,000 Investment in Arroyo Company stock Investment in Lee Corporation stock Investment in Woods Inc. stock Total (a) (b) Cost (at purchase date) $90,000 252,000 (Assume a zero balance for any Fair Value Adjustment account at the beginning of 2025.) 184,000 (b) $526,000 What entry would Bridgeport make at December 31, 2025, to record the investment in Arroyo Company stock if it chooses to report this security using the fair value option? No. Account Titles and Explanation (a) What entry would Bridgeport make at December 31, 2025, to record the investments in the Lee and Woods corporations, assuming that Bridgeport did not select the fair value option for these investments? (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry…
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