Question
On December 31, 2019, Criterion Company provided the following information related to its portfolio of equity investments. The company holds a less than 20% interest
On December 31, 2019, Criterion Company provided the following information related to its portfolio of equity investments. The company holds a less than 20% interest in all equity investments.
The set of transactions are all related, your account balances should be carried forward and used for subsequent entries.
| Investments | Cost | Fair Value |
| Clemson Corp. stock | $20,000 | $19,000 |
| Rocky Mountain Corp stock | 10,000 | 9,000 |
| Buffalo Bills Corp stock | 20,000 | 20,600 |
| Total of portfolio | $50,000 | $48,600 |
| Previous fair value adjustment balance (December 31, 2018)-Credit Balance. |
| $1,500 |
- Prepare the entry/(ies) required on December 31, 2019.
During 2020, Rocky Mountain Corporation's stock was sold. On December 31, 2020, Criterion Company had the following information available related to its portfolio of securities.
| Investments | Cost | Fair Value |
| Clemson Corp. stock | $20,000 | $19,100 |
| Buffalo Bills Corp stock | 20,000 | 20,500 |
| Total of portfolio | $40,000 | $39,600 |
- Prepare the entry/(ies) required on December 31, 2020.
On December 31, 2021, Criterion Company had the following information available related to its portfolio of securities. The previous balance for the Fair Value Adjustment Account for debt securities has a zero balance.
| Investments | Cost | Fair Value |
| Clemson Corp. stock | $20,000 | $18,000 |
| Buffalo Bills Corp stock | 20,000 | 19,600 |
| Total of portfolio | $40,000 | $37,600 |
- Prepare the entry/(ies) required on December 31, 2021.
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50 + Fun Financial Accounting Cases
Authors: Thomas E. McKee
1st Edition
1257824538, 978-1257824533
