Parnevik Company had the following securities in its investment portfolio on December 31, 2017 (all securities were purchased in 2017): Shares Total Cost 3,000 Anderson Co. common stock $ 58,500 Munter Ltd. common stock 10,000 580,000 King Company preferred stock 6,000 255,000 Other information concerning the company's investments follows $ Fair Value Adjustment account balance at 12/31/2017 (credit) 10,100 In 2018, Parnevik completed the following securities transactions. Sale of Anderson common stock on January 15 Selling price per share $ 22.00 Number of shares sold 3,000 $ Fees associated with the sale 2,150 Purchase of Castle common stock on April 17 $ Purchase price per share Number of shares purchased Fees associated with the purchase 33.50 1,000 $ 1,980 On December 31, 2018, the market prices per share of these securities were: $ Munter Ltd. 61.00 King Co. Castle Co. $ 40.00 $ 29.00 In addition, the accounting supervisor of Parnevik told you that, even though all these securities have readily determinable fair values, Parnevik will not actively trade these securities because the top management intends to hold them for more than one year. Compute the unrealized gains or losses and prepare the adjusting entry for Parnevik on December 31, 2018. All information must be entered using cell addresses. The "Cost" amounts in the following table should not be entered as negative numbers. Equity Portfolio-December 31, 2018 Unrealized Fair Gain Securities Cost Value (Loss) Muntner Ltd. $580,000 $255,000 $35,480 King Co. Castle Co. Total portfolio Remember, credit balance is shown as a negative number. Fair value adjustment required at 12/31/2018 Credit Debit Fair Value Adjustment Unrealized Hold ing Gain or Loss-Equity Dec. 31 Parnevik Company had the following securities in its investment portfolio on December 31, 2017 (all securities were purchased in 2017): Shares Total Cost 3,000 Anderson Co. common stock $ 58,500 Munter Ltd. common stock 10,000 580,000 King Company preferred stock 6,000 255,000 Other information concerning the company's investments follows $ Fair Value Adjustment account balance at 12/31/2017 (credit) 10,100 In 2018, Parnevik completed the following securities transactions. Sale of Anderson common stock on January 15 Selling price per share $ 22.00 Number of shares sold 3,000 $ Fees associated with the sale 2,150 Purchase of Castle common stock on April 17 $ Purchase price per share Number of shares purchased Fees associated with the purchase 33.50 1,000 $ 1,980 On December 31, 2018, the market prices per share of these securities were: $ Munter Ltd. 61.00 King Co. Castle Co. $ 40.00 $ 29.00 In addition, the accounting supervisor of Parnevik told you that, even though all these securities have readily determinable fair values, Parnevik will not actively trade these securities because the top management intends to hold them for more than one year. Compute the unrealized gains or losses and prepare the adjusting entry for Parnevik on December 31, 2018. All information must be entered using cell addresses. The "Cost" amounts in the following table should not be entered as negative numbers. Equity Portfolio-December 31, 2018 Unrealized Fair Gain Securities Cost Value (Loss) Muntner Ltd. $580,000 $255,000 $35,480 King Co. Castle Co. Total portfolio Remember, credit balance is shown as a negative number. Fair value adjustment required at 12/31/2018 Credit Debit Fair Value Adjustment Unrealized Hold ing Gain or Loss-Equity Dec. 31
