eBook Print Question 3 Not complete Marked out of 42.00 P Flag question Recording Entries for Equity Investment: FV-NI Adjust FVA at Sale and Year-End At December 31, 2019, the portfolio of investments in equity securities measured at FV-NI held by Athletes Inc. is as follows. Unrealized Fair Holding Investment Security Cost Value Gain (Loss) Badger Common Stock (1,000 shares) $80,000 $79.000 $1.000) Spartan Common Stock (1,600 shares) 100,000 102,000 2,000 Wildcat Common Stock (500 shares) 50.000 47.000 3.000) Total $230,000 $228,000 $12,000) On June 1, 2020, Athletes Inc. sold 800 shares of Spartan stock for 533 per share and 200 shares of Wildcat stock for $55 per share. Athletes Inc, purchased 800 shares of Gopher common stock for $35 per share on August 1, 2020. The fair value of the remaining stock held on December 31, 2020, is as follows: Badger common stock, $84,000; Spartan common stock, $72,000; Wildcat common stock, $41,600; and Gopher common stock, $28,800. a. Prepare the entry for the sale of Spartan and Wildcat common stock on June 1, 2020. Prior to recording the sale, update the investments to fair value. Eliminate the associated Fair Value Adjustment balances upon sale of the investments, b. Record the purchase of Gopher common stock on August 1, 2020. c. Prepare any adjusting entry needed on December 31, 2020. Note: List multiple debits or credits (when applicable) in alphabetical order. Note: Do not round until your final answers. Round your final answers to the nearest whole dollar. b. Record the purchase of Gopher common stock on August 1, 2020. c. Prepare any adjusting entry needed on December 31, 2020. Note: List multiple debits or credits (when applicable) in alphabetical order. Note: Do not round until your final answers. Round your final answers to the nearest whole dollar. Account Name Dr. Cr. Date a. June 1, 2020 To adjust Spartan investment to fair value. June 1, 2020 To record sale of Spartan investment. June 1, 2020 To adjust Wildcat investment to fair value. June 1, 2020 To record sale of Wildcat investment. b. Aug. 1, 2020 C. Dec. 31, 2020 Check eBook Print Question 3 Not complete Marked out of 42.00 P Flag question Recording Entries for Equity Investment: FV-NI Adjust FVA at Sale and Year-End At December 31, 2019, the portfolio of investments in equity securities measured at FV-NI held by Athletes Inc. is as follows. Unrealized Fair Holding Investment Security Cost Value Gain (Loss) Badger Common Stock (1,000 shares) $80,000 $79.000 $1.000) Spartan Common Stock (1,600 shares) 100,000 102,000 2,000 Wildcat Common Stock (500 shares) 50.000 47.000 3.000) Total $230,000 $228,000 $12,000) On June 1, 2020, Athletes Inc. sold 800 shares of Spartan stock for 533 per share and 200 shares of Wildcat stock for $55 per share. Athletes Inc, purchased 800 shares of Gopher common stock for $35 per share on August 1, 2020. The fair value of the remaining stock held on December 31, 2020, is as follows: Badger common stock, $84,000; Spartan common stock, $72,000; Wildcat common stock, $41,600; and Gopher common stock, $28,800. a. Prepare the entry for the sale of Spartan and Wildcat common stock on June 1, 2020. Prior to recording the sale, update the investments to fair value. Eliminate the associated Fair Value Adjustment balances upon sale of the investments, b. Record the purchase of Gopher common stock on August 1, 2020. c. Prepare any adjusting entry needed on December 31, 2020. Note: List multiple debits or credits (when applicable) in alphabetical order. Note: Do not round until your final answers. Round your final answers to the nearest whole dollar. b. Record the purchase of Gopher common stock on August 1, 2020. c. Prepare any adjusting entry needed on December 31, 2020. Note: List multiple debits or credits (when applicable) in alphabetical order. Note: Do not round until your final answers. Round your final answers to the nearest whole dollar. Account Name Dr. Cr. Date a. June 1, 2020 To adjust Spartan investment to fair value. June 1, 2020 To record sale of Spartan investment. June 1, 2020 To adjust Wildcat investment to fair value. June 1, 2020 To record sale of Wildcat investment. b. Aug. 1, 2020 C. Dec. 31, 2020 Check
