Question
On December 21, 2013, Bucky Katt Company provided you with the following information regarding its trading securities. December 31, 2013 Investments (Trading) Cost Fair Value
On December 21, 2013, Bucky Katt Company provided you with the following information regarding its trading securities.
| December 31, 2013 | |||||||
| Investments (Trading) | Cost | Fair Value | Unrealized Gain (Loss) | ||||
| Clemson Corp. stock | $20,000 | $19,000 | $(1,000 | ) | |||
| Colorado Co. stock | 10,000 | 9,000 | (1,000 | ) | |||
| Buffaloes Co. stock | 20,000 | 20,600 | 600 | ||||
| Total of portfolio | $50,000 | $48,600 | (1,400 | ) | |||
| Previous fair value adjustment balance | 0 | ||||||
| Fair value adjustmentCr. | $(1,400 | ) | |||||
During 2014, Colorado Company stock was sold for $9,400. The fair value of the stock on December 31, 2014, was Clemson Corp. stock$19,100; Buffaloes Co. stock$20,500.
| (a) | Prepare the adjusting journal entry needed on December 31, 2013. | |
| (b) | Prepare the journal entry to record the sale of the Colorado Company stock during 2014. | |
| (c) | Prepare the adjusting journal entry needed on December 31, 2014. |
(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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Governmental Accounting Auditing And Financial Reporting
Authors: Stephen J. Gauthier
1st Edition
0891252754, 978-0891252757
