On December 21, 2020, Vaughn Company provided you with the following information regarding its equity investments. Clemson Corp. stock Colorado Co. stock Buffaloes Co. stock Investments (Trading) Total of portfolio Previous fair value adjustment balance Fair value adjustment-Cr. (a) (b) (c) (b) (c) No. Account Titles and Explanation (a) December 31, 2020 Fair Value Adjustment Cash Cost Loss on Sale of Investments $19,200 Equity Investments Unrealized Holding Gain or Loss-Income. Fair Value Adjustment 9,300 19,200 $47,700 Fair Value Unrealized Gain (Loss) During 2021, Colorado Co. stock was sold for $8,840. The fair value of the stock on December 31, 2021, was Clemson Corp. stock- $18,400; Buffaloes Co. stock-$19,680. None of the equity investments result in significant influence. $18,300 8,300 19,790 (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) $46,390 Prepare the adjusting journal entry needed on December 31, 2020. Prepare the journal entry to record the sale of the Colorado Co. stock during 2021. Prepare the adjusting journal entry needed on December 31, 2021. $(900) (1,000) 590 (1,310 ) MacBook Air 0 $1,310 ) Debit 1310 8840 460 1200 Credit 1310 9300

During 2021, Colorado Co.stock was sold for $8,840. The fair value of the stock on December 31, 2021, was Clemson Corp. stock$18,400; Buffaloes Co.stock $19,680. 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 automotically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account tities and enter Ofor the amounts. a. During 2021, Colorado Co.stock was sold for $8,840. The fair value of the stock on December 31, 2021, was Clemson Corp. stock$18,400; Buffaloes Co.stock $19,680. 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 automotically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account tities and enter Ofor the amounts. a