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On December 21, 2025, Indigo Company provided you with the following information regarding its equity investments. During 2026, Colorado Co. stock was sold for $9,650.
On December 21, 2025, Indigo Company provided you with the following information regarding its equity investments. During 2026, Colorado Co. stock was sold for $9,650. The fair value of the stock on December 31, 2026, was Clemson Corp. stock$21,010; Buffaloes Co. stock $22,380. None of the equity investments result in significant influence. (a) Prepare the adjusting journal entry needed on December 31, 2025. (b) Prepare the journal entry to record the sale of the Colorado Co. stock during 2026. (c) Prepare the adjusting journal entry needed on December 31, 2026. (List all debit entries before credit entries. 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.) Ite Account Titles and Explanation 1,2025 31,2026 Cash Loss on Sale of Investments Equity Investments 1,2026 Unrealized Holding Gain or Loss - Income Fair Value Adjustment Cash Loss on Sale of Investments Equity Investments Fair Value Adjustment Unrealized Holding Gain or Loss - Income Debit Credit
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