On December 21, 2012, Zurich Company provided you with the following information regarding its trading securities.
December 31, 2012
|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.)