Question

Exercise 17-7 Your answer is partially correct. Try again. On December 21, 2013, Bucky Katt Company provided you with the following information regarding its trading securities. December 31, 2013 Unrealized Gain Fair Value Cost Investments (Trading) (Loss) $(1,000) (1,000) $19,660 $20,660 Clemson Corp. stock 10,520 11,520 Colorado Co. stock 670 21,330 20,660 Buffaloes Co. stock (1,330) $51,510 $52,840 Total of portfolio Previous fair value adjustment balance $(1,330) Fair value adjustment-Cr. During 2014, Colorado Company stock was sold for $10,930. The fair value of the stock on December 31, 2014, was Clemson Corp. stock-$19,970; Buffaloes Co. stock-$21, 130. (a) Prepare the adjusting journal entry needed on December 31, 2013. Prepare the journal entry to record the sale of the Colorado Company stock during 2014. (b) Prepare the adjusting journal entry needed on December 31, 2014. (c) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) No. Account Titles and Explanation Debit Credit (a) Unrealized Holding Gain or 1330 Fair Value Adjustment 1330 (b Cash 10930 Loss on Sale of Investmen 590 Equity Investments 11520 (c Fair Value Adjustment 960 Unrealized Holding Gair 960

Answer 1

solution - Stock I Cost faer value Unrealized gaen/Clocs) 20660 19970 (690) 20660 21130 470 elenson corp stock Buffaloes coo stock Net en realized gain (loss) 2013 fair value adjustment for 2014 (220) (1330) (110)

Illo fair value Unrealized adjustment Holding galn or loss - Income 1110