Recording Entries for Equity Investment FV NI Adjust FVA at Year End At December 31, 2019, the portfolio of investments in equity securities measured at FV NI held by Athletes Inc is as follows Investment Security Cost Fair Value Unrealized Holding Gain (Loss) Badger Common Stock (1,000 shares) $88,000 $86,900 $(1,100) Spartan Common Stock (1,600 shares) 110,000 112,200 2,200 Wildcat Common Stock (500 shares) 55,000 51,700 (3,300) Total $253,000 $250,800 $(2,200) On June 1, 2020, Athletes Inc sold 880 shares of Spartan stock for $33 per share and 220 shares of Wildcat stock for $55 per share Athletes Inc purchased 880 shares of Gopher common stock for $35 per share on August 1, 2020 The fair value of the remaining stock held on December 31, 2020, is as follows Badger common stock, $92,400 Spartan common stock, $79,200 Wildcat common stock, $45,760 and Gopher common stock, $31,680 a Prepare the entry for the sale of Spartan and Wildcat common stock on June 1, 2020 b Record the purchase of Gopher common stock on August 1, 2020 c Prepare any adjusting entry needed on December 31, 2020 Note List multiple debits or credits (when applicable) in alphabetical order Date Account Name Dr Cr a June 1, 2020 AnswerCashInterest ReceivableInvestment in TSFair Value Adjustment TSInvestment in AFS SecuritiesFair Value Adjustment AFSInvestment in HTM SecuritiesInvestment in StockFair Value Adjustment Equity SecuritiesFair Value Adjustment Fair Value OptionAllowance for Credit LossesAccumulated Other Comprehensive IncomeUnrealized Gain or Loss OCIUnrealized Gain or Loss IncomeDividend RevenueInterest RevenueInvestment IncomeLoss on ImpairmentRecovery of Loss on ImpairmentLoss on Sale of InvestmentGain on Sale of InvestmentN A Answer Answer AnswerCashInterest ReceivableInvestment in TSFair Value Adjustment TSInvestment in AFS SecuritiesFair Value Adjustment AFSInvestment in HTM SecuritiesInvestment in StockFair Value Adjustment Equity SecuritiesFair Value Adjustment Fair Value OptionAllowance for Credit LossesAccumulated Other Comprehensive IncomeUnrealized Gain or Loss OCIUnrealized Gain or Loss IncomeDividend RevenueInterest RevenueInvestment IncomeLoss on ImpairmentRecovery of Loss on ImpairmentLoss on Sale of InvestmentGain on Sale of InvestmentN A Answer Answer AnswerCashInterest ReceivableInvestment in TSFair Value Adjustment TSInvestment in AFS SecuritiesFair Value Adjustment AFSInvestment in HTM SecuritiesInvestment in StockFair Value Adjustment Equity SecuritiesFair Value Adjustment Fair Value OptionAllowance for Credit LossesAccumulated Other Comprehensive IncomeUnrealized Gain or Loss OCIUnrealized Gain or Loss IncomeDividend RevenueInterest RevenueInvestment IncomeLoss on ImpairmentRecovery of Loss on ImpairmentLoss on Sale of InvestmentGain on Sale of InvestmentN A Answer Answer b Aug 1, 2020 AnswerCashInterest ReceivableInvestment in TSFair Value Adjustment TSInvestment in AFS SecuritiesFair Value Adjustment AFSInvestment in HTM SecuritiesInvestment in StockFair Value Adjustment Equity SecuritiesFair Value Adjustment Fair Value OptionAllowance for Credit LossesAccumulated Other Comprehensive IncomeUnrealized Gain or Loss OCIUnrealized Gain or Loss IncomeDividend RevenueInterest RevenueInvestment IncomeLoss on ImpairmentRecovery of Loss on ImpairmentLoss on Sale of InvestmentGain on Sale of InvestmentN A Answer Answer AnswerCashInterest ReceivableInvestment in TSFair Value Adjustment TSInvestment in AFS SecuritiesFair Value Adjustment AFSInvestment in HTM SecuritiesInvestment in StockFair Value Adjustment Equity SecuritiesFair Value Adjustment Fair Value OptionAllowance for Credit LossesAccumulated Other Comprehensive IncomeUnrealized Gain or Loss OCIUnrealized Gain or Loss IncomeDividend RevenueInterest RevenueInvestment IncomeLoss on ImpairmentRecovery of Loss on ImpairmentLoss on Sale of InvestmentGain on Sale of InvestmentN A Answer Answer c Dec 31, 2020 AnswerCashInterest ReceivableInvestment in TSFair Value Adjustment TSInvestment in AFS SecuritiesFair Value Adjustment AFSInvestment in HTM SecuritiesInvestment in StockFair Value Adjustment Equity SecuritiesFair Value Adjustment Fair Value OptionAllowance for Credit LossesAccumulated Other Comprehensive IncomeUnrealized Gain or Loss OCIUnrealized Gain or Loss IncomeDividend RevenueInterest RevenueInvestment IncomeLoss on ImpairmentRecovery of Loss on ImpairmentLoss on Sale of InvestmentGain on Sale of InvestmentN A Answer Answer AnswerCashInterest ReceivableInvestment in TSFair Value Adjustment TSInvestment in AFS SecuritiesFair Value Adjustment AFSInvestment in HTM SecuritiesInvestment in StockFair Value Adjustment Equity SecuritiesFair Value Adjustment Fair Value OptionAllowance for Credit LossesAccumulated Other Comprehensive IncomeUnrealized Gain or Loss OCIUnrealized Gain or Loss IncomeDividend RevenueInterest RevenueInvestment IncomeLoss on ImpairmentRecovery of Loss on ImpairmentLoss on Sale of InvestmentGain on Sale of InvestmentN A Answer Answer

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Recording Entries for Equity Investment: FV-NI Adjust FVA at Year-End At December 31, 2019, the portfolio of investments in equity securities measured at FV-NI held

Recording Entries for Equity Investment: FV-NI

Adjust FVA at Year-End

At December 31, 2019, the portfolio of investments in equity securities measured at FV-NI held by Athletes Inc. is as follows.

Investment Security	Cost	Fair Value	Unrealized Holding Gain (Loss)
Badger Common Stock (1,000 shares)	$88,000	$86,900	$(1,100)
Spartan Common Stock (1,600 shares)	110,000	112,200	2,200
Wildcat Common Stock (500 shares)	55,000	51,700	(3,300)
Total	$253,000	$250,800	$(2,200)

On June 1, 2020, Athletes Inc. sold 880 shares of Spartan stock for $33 per share and 220 shares of Wildcat stock for $55 per share. Athletes Inc. purchased 880 shares of Gopher common stock for $35 per share on August 1, 2020. The fair value of the remaining stock held on December 31, 2020, is as follows: Badger common stock, $92,400; Spartan common stock, $79,200; Wildcat common stock, $45,760; and Gopher common stock, $31,680.

a. Prepare the entry for the sale of Spartan and Wildcat common stock on June 1, 2020. b. Record the purchase of Gopher common stock on August 1, 2020. c. Prepare any adjusting entry needed on December 31, 2020.

Note: List multiple debits or credits (when applicable) in alphabetical order.

	Date	Account Name	Dr.	Cr.
a.	June 1, 2020	AnswerCashInterest ReceivableInvestment in TSFair Value Adjustment--TSInvestment in AFS SecuritiesFair Value Adjustment--AFSInvestment in HTM SecuritiesInvestment in StockFair Value Adjustment--Equity SecuritiesFair Value Adjustment--Fair Value OptionAllowance for Credit LossesAccumulated Other Comprehensive IncomeUnrealized Gain or Loss--OCIUnrealized Gain or Loss--IncomeDividend RevenueInterest RevenueInvestment IncomeLoss on ImpairmentRecovery of Loss on ImpairmentLoss on Sale of InvestmentGain on Sale of InvestmentN/A	Answer	Answer
		AnswerCashInterest ReceivableInvestment in TSFair Value Adjustment--TSInvestment in AFS SecuritiesFair Value Adjustment--AFSInvestment in HTM SecuritiesInvestment in StockFair Value Adjustment--Equity SecuritiesFair Value Adjustment--Fair Value OptionAllowance for Credit LossesAccumulated Other Comprehensive IncomeUnrealized Gain or Loss--OCIUnrealized Gain or Loss--IncomeDividend RevenueInterest RevenueInvestment IncomeLoss on ImpairmentRecovery of Loss on ImpairmentLoss on Sale of InvestmentGain on Sale of InvestmentN/A	Answer	Answer
		AnswerCashInterest ReceivableInvestment in TSFair Value Adjustment--TSInvestment in AFS SecuritiesFair Value Adjustment--AFSInvestment in HTM SecuritiesInvestment in StockFair Value Adjustment--Equity SecuritiesFair Value Adjustment--Fair Value OptionAllowance for Credit LossesAccumulated Other Comprehensive IncomeUnrealized Gain or Loss--OCIUnrealized Gain or Loss--IncomeDividend RevenueInterest RevenueInvestment IncomeLoss on ImpairmentRecovery of Loss on ImpairmentLoss on Sale of InvestmentGain on Sale of InvestmentN/A	Answer	Answer
b.	Aug 1, 2020	AnswerCashInterest ReceivableInvestment in TSFair Value Adjustment--TSInvestment in AFS SecuritiesFair Value Adjustment--AFSInvestment in HTM SecuritiesInvestment in StockFair Value Adjustment--Equity SecuritiesFair Value Adjustment--Fair Value OptionAllowance for Credit LossesAccumulated Other Comprehensive IncomeUnrealized Gain or Loss--OCIUnrealized Gain or Loss--IncomeDividend RevenueInterest RevenueInvestment IncomeLoss on ImpairmentRecovery of Loss on ImpairmentLoss on Sale of InvestmentGain on Sale of InvestmentN/A	Answer	Answer
		AnswerCashInterest ReceivableInvestment in TSFair Value Adjustment--TSInvestment in AFS SecuritiesFair Value Adjustment--AFSInvestment in HTM SecuritiesInvestment in StockFair Value Adjustment--Equity SecuritiesFair Value Adjustment--Fair Value OptionAllowance for Credit LossesAccumulated Other Comprehensive IncomeUnrealized Gain or Loss--OCIUnrealized Gain or Loss--IncomeDividend RevenueInterest RevenueInvestment IncomeLoss on ImpairmentRecovery of Loss on ImpairmentLoss on Sale of InvestmentGain on Sale of InvestmentN/A	Answer	Answer
c.	Dec. 31, 2020	AnswerCashInterest ReceivableInvestment in TSFair Value Adjustment--TSInvestment in AFS SecuritiesFair Value Adjustment--AFSInvestment in HTM SecuritiesInvestment in StockFair Value Adjustment--Equity SecuritiesFair Value Adjustment--Fair Value OptionAllowance for Credit LossesAccumulated Other Comprehensive IncomeUnrealized Gain or Loss--OCIUnrealized Gain or Loss--IncomeDividend RevenueInterest RevenueInvestment IncomeLoss on ImpairmentRecovery of Loss on ImpairmentLoss on Sale of InvestmentGain on Sale of InvestmentN/A	Answer	Answer
		AnswerCashInterest ReceivableInvestment in TSFair Value Adjustment--TSInvestment in AFS SecuritiesFair Value Adjustment--AFSInvestment in HTM SecuritiesInvestment in StockFair Value Adjustment--Equity SecuritiesFair Value Adjustment--Fair Value OptionAllowance for Credit LossesAccumulated Other Comprehensive IncomeUnrealized Gain or Loss--OCIUnrealized Gain or Loss--IncomeDividend RevenueInterest RevenueInvestment IncomeLoss on ImpairmentRecovery of Loss on ImpairmentLoss on Sale of InvestmentGain on Sale of InvestmentN/A	Answer	Answer