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On December 21, 2017, Sheffield Company provided you with the following information regarding its equity investments. During 2018, Colorado Company stock was sold for $8,790.

On December 21, 2017, Sheffield Company provided you with the following information regarding its equity investments.

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During 2018, Colorado Company stock was sold for $8,790. The fair value of the stock on December 31, 2018, was Clemson Corp. stock$19,990; Buffaloes Co. stock$21,320. 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.
December 31, 2017 Unrealized Gain Loss Fair Investments (Trading) Cost _Value Clemson Corp. stock Colorado Co. stock Buffaloes Co. stock Total of portfolio Previous fair value adjustment balance Fair value adjustment-Cr S20,800 S19,900 8,300 21,420 S49,620 $(900) (1,000) 620 (1,280) 9,300 20,800 $50,900 $(1,280)

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