On December 31, 2019, Novak Corp. provided you with the following pre-adjustment information regarding its portfolio of investments held for short-term profit-taking: Investments Moonstar Corp. shares Bilby Corp. shares Radius Ltd. shares Total portfolio December 31, 2019 Carrying Amount $20,000 10,000 19,800 $49,800 Fair Value $18,800 8,900 20,400 $48,100 During 2020, the Bilby Corp. shares were sold for $9,500. The fair values of the securities on December 31, 2020, were as follows: Moonstar Corp. shares $19,900 and Radius Ltd. shares $20,300. The company does not recognize and report dividends and other components of investment gains and losses separately. Prepare the adjusting journal entry needed on December 31, 2019. (Credit account titles are automatically indented when the 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.)
On December 31, 2019, Novak Corp. provided you with the following pre-adjustment information regarding its portfolio of investments held for short-term profit-taking: Investments Moonstar Corp. shares Bilby Corp. shares Radius Ltd. shares Total portfolio December 31, 2019 Carrying Amount $20,000 10,000 19,800 $49,800 Fair Value $18,800 8,900 20,400 $48,100 During 2020, the Bilby Corp. shares were sold for $9,500. The fair values of the securities on December 31, 2020, were as follows: Moonstar Corp. shares $19,900 and Radius Ltd. shares $20,300. The company does not recognize and report dividends and other components of investment gains and losses separately. Prepare the adjusting journal entry needed on December 31, 2019. (Credit account titles are automatically indented when the 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Prepare the journal entry to record the sale of the Bilby Corp. shares during 2020. (Credit account titles are automatically indented when the 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.)
Account Titles and Explanation
Debit
Account Titles and Explanation
Prepare the adjusting journal entry needed on December 31, 2020. (Credit account titles are automatically indented when the 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.)
Credit
Debit
Credit
Transcribed Image Text:On December 31, 2019, Novak Corp. provided you with the following pre-adjustment information regarding its portfolio of investments held for short-term profit-taking:
Investments
Moonstar Corp. shares
Bilby Corp. shares.
Radius Ltd. shares
Total portfolio
December 31, 2019
Carrying Amount
$20,000
10,000
19,800
$49,800
Fair Value
$18,800
8,900
20,400
$48,100
During 2020, the Bilby Corp. shares were sold for $9,500. The fair values of the securities on December 31, 2020, were as follows: Moonstar Corp. shares $19,900 and Radius Ltd. shares
$20,300. The company does not recognize and report dividends and other components of investment gains and losses separately.
Prepare the adjusting journal entry needed on December 31, 2019. (Credit account titles are automatically indented when the 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.)
Account Titles and Explanation
Debit
Credit
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