Question
Exercise 17-7 On December 21, 2017, Coronado Company provided you with the following information regarding its equity investments. December 31, 2017 Investments (Trading) Cost Fair
Exercise 17-7
On December 21, 2017, Coronado Company provided you with the following information regarding its equity investments.
December 31, 2017 | |||||||
Investments (Trading) | Cost | Fair Value | Unrealized Gain (Loss) | ||||
Clemson Corp. stock | $21,100 | $20,100 | $(1,000 | ) | |||
Colorado Co. stock | 9,400 | 8,400 | (1,000 | ) | |||
Buffaloes Co. stock | 21,100 | 21,680 | 580 | ||||
Total of portfolio | $51,600 | $50,180 | (1,420 | ) | |||
Previous fair value adjustment balance | 0 | ||||||
Fair value adjustmentCr. | $(1,420 | ) |
During 2018, Colorado Company stock was sold for $8,860. The fair value of the stock on December 31, 2018, was Clemson Corp. stock$20,190; Buffaloes Co. stock$21,580. None of the equity investments result in significant influence.
(a) | Prepare the adjusting journal entry needed on December 31, 2017. | |
(b) | Prepare the journal entry to record the sale of the Colorado Co. stock during 2018. | |
(c) | Prepare the adjusting journal entry needed on December 31, 2018. |
(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.)
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