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On December 31, 2019, Pina Colada Corp. provided you with the following pre-adjustment information regarding its portfolio of investments held for short-term profit-taking: December 31,
On December 31, 2019, Pina Colada Corp. provided you with the following pre-adjustment information regarding its portfolio of investments held for short-term profit-taking:
| December 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Investments | Carrying Amount | Fair Value | ||||||
| Moonstar Corp. shares | $20,000 | $19,200 | ||||||
| Bilby Corp. shares | 10,000 | 9,100 | ||||||
| Radius Ltd. shares | 20,200 | 20,800 | ||||||
| Total portfolio | $50,200 | $49,100 | ||||||
During 2020, the Bilby Corp. shares were sold for $9,500. The fair values of the securities on December 31, 2020, were as follows: Moonstar Corp. shares $19,500 and Radius Ltd. shares $20,700. Dividends and other investment income and losses are all reported in one investment income account.Prepare the adjusting journal entry needed on December 31, 2019.
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