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 $ 19,200 $ 18,300 $( 900 ) Colorado Co. stock 9,500 8,600 ( 900 ) Buffaloes Co. stock 19,200 19,800 600 Total of portfolio $ 47,900 $ 46,700 ( 1,200 ) Previous fair value adjustment balance 0 Fair value adjustment—Cr. $( 1,200 ) During 2021, Colorado Co. stock was sold for $ 9,150. The fair value of the stock on December 31, 2021, was Clemson Corp. stock—$ 18,400; Buffaloes Co. stock—$ 19,690. None of the equity investments result in significant influence. (a) Prepare the adjusting journal entry needed on December 31, 2020. (b) Prepare the journal entry to record the sale of the Colorado Co. stock during 2021. (c) Prepare the adjusting journal entry needed on December 31, 2021. 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 titles and enter 0 for the amounts.) No. Account Titles and Explanation Debit Credit (a) enter an account title to record transaction A enter a debit amount enter a credit amount enter an account title to record transaction A enter a debit amount enter a credit amount (b) enter an account title to record transaction B enter a debit amount enter a credit amount enter an account title to record transaction B enter a debit amount enter a credit amount enter an account title to record transaction B enter a debit amount enter a credit amount (c) enter an account title to record transaction C enter a debit amount enter a credit amount enter an account title to record transaction C enter a debit amount enter a credit amount

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 19E: Lyon Company shows the following condensed income statement information for the year ended December...

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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	$ 19,200	$ 18,300	$( 900	)
Colorado Co. stock	9,500	8,600	( 900	)
Buffaloes Co. stock	19,200	19,800	600
Total of portfolio	$ 47,900	$ 46,700	( 1,200	)
Previous fair value adjustment balance			0
Fair value adjustment—Cr.			$( 1,200	)

During 2021, Colorado Co. stock was sold for $ 9,150. The fair value of the stock on December 31, 2021, was Clemson Corp. stock—$ 18,400; Buffaloes Co. stock—$ 19,690. None of the equity investments result in significant influence.

(a)		Prepare the adjusting journal entry needed on December 31, 2020.
(b)		Prepare the journal entry to record the sale of the Colorado Co. stock during 2021.
(c)		Prepare the adjusting journal entry needed on December 31, 2021.

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 titles and enter 0 for the amounts.)

No.	Account Titles and Explanation	Debit	Credit
(a)	enter an account title to record transaction A	enter a debit amount	enter a credit amount
	enter an account title to record transaction A	enter a debit amount	enter a credit amount
(b)	enter an account title to record transaction B	enter a debit amount	enter a credit amount
	enter an account title to record transaction B	enter a debit amount	enter a credit amount
	enter an account title to record transaction B	enter a debit amount	enter a credit amount
(c)	enter an account title to record transaction C	enter a debit amount	enter a credit amount
	enter an account title to record transaction C	enter a debit amount	enter a credit amount

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