Question
Exercise 17-7 On December 21, 2017, Riverbed 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, Riverbed 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 | $18,900 | $17,900 | $(1,000 | ) | |||
| Colorado Co. stock | 9,000 | 8,000 | (1,000 | ) | |||
| Buffaloes Co. stock | 18,900 | 19,540 | 640 | ||||
| Total of portfolio | $46,800 | $45,440 | (1,360 | ) | |||
| Previous fair value adjustment balance | 0 | ||||||
| Fair value adjustmentCr. | $(1,360 | ) | |||||
During 2018, Colorado Company stock was sold for $8,550. The fair value of the stock on December 31, 2018, was Clemson Corp. stock$18,010; Buffaloes Co. stock$19,430. 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. |
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Money Tracker Track Your Expenses And Grow Financially
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1st Edition
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