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Prepare the adjusting journal entry needed on December 31, 2020. | |||
Date | Account Titles and Explanation | Debit | Credit |
Dec. 31, 2020 | Unrealized Holding Gain or Loss- Income | $2,023.00 | |
Fair value adjustment | $2,023.00 | ||
Prepare the journal entry to record the sale of the Plus, Inc. stock during 2021. | |||
Date | Account Titles and Explanation | Debit | Credit |
During 2021 | Cash | 27270 | |
Gain on sale of investment | 470 | ||
Equity Investment (trading) | 26800 | ||
Date | Account Titles and Explanation | Debit | Credit |
Dec. 31, 2021 | Fair value Adjustment | $1,413 | |
Unrealized Holding gain or loss - Income | $1,413 | ||
Cost | FV | Profit(Loss) | |
SC Corp. stock | $42,000.00 | $39,080 | -$2,920 |
True Co. stock | 52,000 | $54,310 | $2,310 |
-$610 | |||
Unrealized Holding Gain or Loss- Income 2021 | -2023 | ||
$1,413 |
On December 21, 2020, Sage Company provided you with the following information regarding its equity investments....
On December 21, 2020, Buffalo Company provided you with the following information regarding its equity investments. December 31, 2020 Investments (Trading) Cost Fair Value Unrealized Gain (Loss) Clemson Corp.stock $18,600 $(900) (1,100) 9,900 Colorado Co.stock Buffaloes Co.stock $17,700 8,800 19,190 $45,690 590 18,600 $47,100 Total of portfolio (1.410) Previous fair value adjustment balance Fair value adjustment-Cr. $(1.410) During 2021, Colorado Co. stock was sold for $9,270. The fair value of the stock on December 31, 2021, was Clemson Corp. stock-$17,800;...
On December 21, 2020, Concord Company provided you with the following information regarding its equity investments. December 31, 2020 Investments (Trading) Cost Fair Value Unrealized Gain (Loss) Clemson Corp. stock $20,800 $19,900 $(900) Colorado Co. stock 9,300 8,300 (1,000) Buffaloes Co. stock 20,800 21,420 620 Total of portfolio $50,900 $49,620 (1,280) Previous fair value adjustment balance Fair value adjustment-Cr. $(1,280) During 2021, Colorado Co. stock was sold for $8,790. The fair value of the stock on December 31, 2021, was...
On December 21, 2017, Bucky Katt Company provided you with the following information regarding its equity investments. December 31, 2017 Fair Value Unrealized Gain (Loss) Investments (Trading) Cost (1,000) (1,000 ) 600 (1,400) Clemson Corp. stock Colorado Co. stock Buffaloes Co. stock Total of portfolio Previous fair value adjustment balance Fair value adjustment-Cr. $20,000 $19,000 9,000 20,000 20,600 $50,000 $48,600 10,000 0 $ (1,400) During 2018, Colorado Company stock was sold for $9,400. The fair value of the stock on...
On December 21, 2017, Skysong Company provided you with the following information regarding its equity investments. December 31, 2017 Investments (Trading) Cost Fair Value Unrealized Gain (Loss) Clemson Corp. stock $19,500 $18,500 $(1,000 ) Colorado Co. stock 9,100 8,000 (1,100 ) Buffaloes Co. stock 19,500 20,140 640 Total of portfolio $48,100 $46,640 (1,460 ) Previous fair value adjustment balance 0 Fair value adjustment—Cr. $(1,460 ) During 2018, Colorado Company stock was sold for $8,480. The fair value of the stock...
Presented below is information related to equipment owned by Coronado Company at December 31, 2020. Cost $10,080,000 Accumulated depreciation to date 1,120,000 Expected future net cash flows 7,840,000 Fair value 5,376,000 Assume that Coronado will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 5 years. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (If no entry is required,...
Presented below is information related to equipment owned by Metlock Company at December 31, 2020. Cost $9,900,000 Accumulated depreciation to date 1,100,000 Expected future net cash flows 7,700,000 Fair value 5,280,000 Assume that Metlock will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 5 years. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (If no entry is required,...
Presented below is information related to equipment owned by Blue Company at December 31, 2020. Cost $10,980,000 Accumulated depreciation to date 1,220,000 Expected future net cash flows 8,540,000 Fair value 5,856,000 Blue intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $24,400. As of December 31, 2020, the equipment has a remaining useful life of 5 years. Prepare the journal entry (if any) to record the impairment of the...
Presented below is information related to equipment owned by Metlock Company at December 31, 2020. Cost $9,900,000 Accumulated depreciation to date 1,100,000 Expected future net cash flows 7,700,000 Fair value 5,280,000 Metlock intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $22,000. As of December 31, 2020, the equipment has a remaining useful life of 5 years. Prepare the journal entry (if any) to record the impairment of the...
Exercise 17-07 On December 21, 2020, Bucky Katt Company provided you with the following information regarding its equity investments. December 31, 2020 Investments (Trading) Cost vaire Clemson Corp. stock $20,000 $19,000 Colorado Co. stock 10,000 9,000 Buffaloes Co. stock 20,000 20,600 Total of portfolio $50,000 $48,600 Previous fair value adjustment balance Fair value adjustment-Cr. Unrealized Gain (Loss) $(1,000) (1,000) 600 (1,400 ) $(1,400) During 2021, Colorado Co. stock was sold for $9,400. The fair value of the stock on December...
Exercise 17-7 On December 21, 2017, Sheffield Company provided you with the following information regarding its equity investments. December 31, 2017 Investments (Trading) Cost_ Fair Value Unrealized Gain (Loss) Clemson Corp. stock $21,900 $20,900 $(1,000) Colorado Co. stock 10,100 9,100 (1,000) Buffaloes Co. stock 21,900 22,480 580 Total of portfolio $53,900 $52,480 (1,420 ) Previous fair value adjustment balance Fair value adjustment-Cr. $(1,420) During 2018, Colorado Company stock was sold for $9,650. The fair value of the stock on December...