No. | Account Titles and Explanation | Debit | Credit |
a) | Unrealized holding gain or loss | $1,310 | |
Fair value adjustment | $1,310 | ||
(To record the unrealized loss on the trading securities) | |||
b) | Cash | $8,840 | |
Loss on sale of Colorado Co. Stock ($9,300 - $8,840) | $460 | ||
Colorado Co. Equity Investment - Trading | $9,300 | ||
(To record the sale of the Colorado Co. stock with loss) | |||
c) | Fair value adjustment (see working note) | $990 | |
Unrealized holding gain or loss | $990 | ||
(To record the adjusting entry at the end of the period) | |||
Working notes: | |||
Unrealized loss on Clemson Corp. Stock ($18,400 - $19,200) | ($800) | ||
Unrealized gain on Buffaloes Co. Stock ($19,680 - $19,200) | $480 | ||
Total Unrealized Gain or Loss (Loss) | ($320) | ||
Less: Unrealized loss at the beginning period | ($1,310) | ||
Fair value adjustment required at the end of the period | ($990) |
PRINTER VERSION BACK Exercise 17-7 On December 21, 2017, Whispering Company provided you with the following...
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...
Exercise 17-7 On December 21, 2017, Pina Company provided you with the following information regarding its equity investments December 31, 2017 Fair Value Unrealized Gain CLoss) Investments (Trading) Cost Clemson Corp. stock Colorado Co. stock Buffaloes Co. stock Total of portfolio Previous fair value adjustment balance Fair value adjustment-Cr $19,800 $18,900 400 8,500 19,800 20,450 49,000 $47,850 $(900) (900) 650 (1,150 ) $(1,150) During 2018, Colorado Company stock was sold for $8,960. The fair value of the stock on December...
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...
On December 21, 2020, Marigold 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 $20,300 $19,200 $(1,100) Colorado Co.stock 10,600 9,500 (1,100) Buffaloes Co. stock 20,300 20,900 600 Total of portfolio $51,200 $49,600 (1,600) Previous fair value adjustment balance Fair value adjustment-Cr. $(1,600) During 2021, Colorado Co.stock was sold for $10,010. The fair value of the stock on December 31, 2021, was Clemson Corp.stock-$19,290;...
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...
On December 21, 2020, Coronado 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 $19,300 $18,200 $(1,100 ) Colorado Co. stock 10,400 9,400 (1,000 ) Buffaloes Co. stock 19,300 19,930 630 Total of portfolio $49,000 $47,530 (1,470 ) Previous fair value adjustment balance 0 Fair value adjustment—Cr. $(1,470 ) During 2021, Colorado Co. stock was sold for $9,910. The fair value of the stock...
On December 21, 2020, Splish 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 $19,900 $18,900 $(1,000 ) Colorado Co. stock 10,300 9,200 (1,100 ) Buffaloes Co. stock 19,900 20,460 560 Total of portfolio $50,100 $48,560 (1,540 ) Previous fair value adjustment balance 0 Fair value adjustment—Cr. $(1,540 ) During 2021, Colorado Co. stock was sold for $9,750. The fair value of the stock...
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...
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...