Trading Securities Entries on December 21, 2010, Zurich Company provided you with the following information regarding its
Question:
Trading Securities Entries on December 21, 2010, Zurich Company provided you with the following information regarding its trading securities. During 2011, Carolina Company stock was sold for $9,500. The fair value of the stock on December 31, 2011, was: Star gate Corp. stock?$19,300; Vector man Co. stock?$20,500.
(a) Prepare the adjusting journal entry needed on December 31, 2010.
(b) Prepare the journal entry to record the sale of the Carolina Company stock during 2011.
(c) Prepare the adjusting journal entry needed on December 31, 2011.
December 31, 2010 Investments (Trading) Fair Value Unrealized Gain (Loss) Cost Stargate Corp. stock Carolina Co. stock Vectorman Co. stock $(1,000) $20,000 $19,000 9,000 20,000 $50.000 20,600 600 Total of portfollo Previous securities fair value adjustment balance Securities fair value adjustment-Cr. (1,400) $48,600 -0- $(1,400)
Step by Step Answer:
a December 31 2010 Unrealized Holding Gain or Loss x Income 1400 ...View the full answer
Intermediate Accounting
ISBN: 978-0470423684
13th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
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A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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