On December $21,2025,$ Swifty Company provided you with the following information regarding its equity investments.

December $31,2025$

Investments

Cost

Fair Value

Unrealized Gain $($Loss$)$

Clemson Corp. stock

$$19,200$ $$18,300$ $$(900)$

Colorado Co$.$ stock

$9,5008,600(900)$

Buffaloes Co$.$ stock

$19,20019,800600$

Total of portfolio

$$47,900$ $$46,700(1,200)$

Previous fair value adjustment balance

$0$

Fair value adjustment$$Cr$.$

$$(1,200)$

During $2026,$ Colorado Co$.$ stock was sold for $$9,150.$ The fair value of the stock on December $31,2026,$ was Clemson Corp. stock$$$$18,400$; Buffaloes Co$.$ stock$$$$19,690.$ None of the equity investments result in significant influence.

$($a$)$

Prepare the adjusting journal entry needed on December $31,2025.$

$($b$)$

Prepare the journal entry to record the sale of the Colorado Co$.$ stock during $2026.$

$($c$)$

Prepare the adjusting journal entry needed on December $31,2026.$

$($List all debit entries before credit entries. 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.$)$

No$.$

Date

Account Titles and Explanation

Debit

Credit

$($a$)$

choose a transaction date

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

$($b$)$

choose a transaction date

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

$($c$)$

choose a transaction date

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

eTextbook and Media

List of Accounts

Attempts: $0$ of $6$ used