ACC/423 Week 3 Question1 - 63897

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On December 21, 2012, Zurich Company provided you with the following information regarding its trading securities.

December 31, 2012
Investments (Trading)
 
Cost
 
Fair Value
 
Unrealized Gain (Loss)
Stargate Corp. stock   $23,750   $22,750   $(1,000 )
Carolina Co. stock   10,220   9,220   (1,000 )
Vectorman Co. stock   23,750   24,350   600  
Total of portfolio   $57,720   $56,320   (1,400 )
Previous fair value adjustment balance           0  
Fair value adjustment—Cr.           $(1,400 )


During 2013, Carolina Company stock was sold for $9,700. The fair value of the stock on December 31, 2013, was: Stargate Corp. stock—$23,170; Vectorman Co. stock—$24,240.

(a)   Prepare the adjusting journal entry needed on December 31, 2012.
(b)   Prepare the journal entry to record the sale of the Carolina Company stock during 2013.
(c)   Prepare the adjusting journal entry needed on December 31, 2013.


(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

 

Solution Description

Question 1

Securities
 
Cost
 
Fair Value
 
Attachments
Week 3 Question 1.docx
Week 3 Question...