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On December 21, 2020, Skysong Company provided you with the following information regarding its equity investments. December 31, 2020 Investments (Trading) Cost Fair Value Unrealized

On December 21, 2020, Skysong Company provided you with the following information regarding its equity investments.

December 31, 2020

Investments (Trading)

Cost

Fair Value

Unrealized Gain (Loss)

Clemson Corp. stock

$19,900 $19,000 $(900 )

Colorado Co. stock

10,100 9,100 (1,000 )

Buffaloes Co. stock

19,900 20,460 560

Total of portfolio

$49,900 $48,560 (1,340 )

Previous fair value adjustment balance

0

Fair value adjustmentCr.

$(1,340 )

During 2021, Colorado Co. stock was sold for $9,590. The fair value of the stock on December 31, 2021, was Clemson Corp. stock$19,100; Buffaloes Co. stock$20,360. None of the equity investments result in significant influence.

(a) Prepare the adjusting journal entry needed on December 31, 2020.
(b) Prepare the journal entry to record the sale of the Colorado Co. stock during 2021.
(c) Prepare the adjusting journal entry needed on December 31, 2021.

(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.

Account Titles and Explanation

Debit

Credit

(a)

enter an account title to record transaction A

enter a debit amount

enter a credit amount

enter an account title to record transaction A

enter a debit amount

enter a credit amount

(b)

enter an account title to record transaction B

enter a debit amount

enter a credit amount

enter an account title to record transaction B

enter a debit amount

enter a credit amount

enter an account title to record transaction B

enter a debit amount

enter a credit amount

(c)

enter an account title to record transaction C

enter a debit amount

enter a credit amount

enter an account title to record transaction C

enter a debit amount

enter a credit amount

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