Question

Cost - wine ollowing information regarding its equity investments December 31, 2017 Fair Tnvestments (Trading) Unrealired Gain Value (Loss) Clemson Corp. stock $19,900 $19.000 $1900 Colorado Co stock 10.100 9.100 (1.000 Buffaloes Co. stock 19,900 20,460 Total of portfolio $40,000 $48.560 Previous fair value adjustment balance Fair value adjustment- $(1.740) 560 During 2018, Colorado Company stock was sold for $9.590. The fair value of the stock on December 31, 2018, was Clemson Corp. stock - $19,100; Buffaloes Costock-$20,360. of the equity investments result in significant influence (a) (b) (c) Prepare the adjusting journal entry needed on December 31, 2017 Prepare the Journal entry to record the sale of the Colorado Co stock during 2018 Prepare the adjusting Journal entry needed on December 31, 2018 (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 enter for the amounts)

Answer 1

Journal entries

S.no	General journal	Debit	Credit
A. Dec 31,2017	Unrealized holding gain or loss- Income	$1,340
	Securities fair value adjustment- Trading		$1,340
B.	Cash	$9,590
	Loss on sale of securities	$510
	Trading securities		$10,100
C. Dec 31,2018	Securities fair value adjustment- Trading	$850
	Unrealized holding gain or loss- income		$850

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