Question
On December 21, 2017, Grouper Company provided you with the following information regarding its equity investments. December 31, 2017 Investments (Trading) Cost Fair Value Unrealized
On December 21, 2017, Grouper 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. |
(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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Financial And Managerial Accounting 15th Edition Text Only
Authors: Jan Williams
15th Edition
B005FCGT4O
