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On December 21, 2017, Whispering Company provided you with the following information regarding its equity investments. December 31, 2017 Investments (Trading) Cost Cost Fair Value
On December 21, 2017, Whispering Company provided you with the following information regarding its equity investments. December 31, 2017 Investments (Trading) Cost Cost Fair Value Clemson Corp. stock Colorado Co. stock Buffaloes Co. stock Total of portfolio Previous fair value adjustment balance Fair value adjustment-Cr. $20,400 10,900 20,400 $51,700 $19,300 9,800 20,990 $50,090 Unrealized Gain (Loss) $(1,100) (1,100) 590 (1,610 ) $(1,610 ) During 2018, Colorado Company stock was sold for $10,350. The fair value of the stock on December 31, 2018, was Clemson Corp. stock-$19,390; Buffaloes Co. stock, $20,900. None of the equity investments result in significant influence. (a) (b) (c) Prepare the adjusting journal entry needed on December 31, 2017 Prepare the journal entry to record the sale of the Colorado Co. stock during 2018. 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 o for the amounts.) No. Account Titles and Explanation Credit Debit 1,610 (a) Unrealized Holding Gain or Loss -Income Fair Value Adjustment 1 1 ,610 a) Unrealized Holding Gain or Loss - Income 1,610 Fair Value Adjustment 1,610 (b) Cash Loss on Sale of Investments Equity Investments Fair Value Adjustment Unrealized Holding Gain or Loss - Income
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