On December 21, 2025, Blue Company provided you with the following information regarding its equity investments. Investments Clemson Corp. stock Colorado Co. stock December 31, 2025 Buffaloes Co. stock Total of portfolio Previous fair value adjustment balance Fair value adjustment-Cr. (a) (b) (c) Cost $20,200 9,900 20,200 $50,300 Fair Value Unrealized Gain (Loss) $(900) (1,000) $19,300 8,900 20,790 $48,990 590 (1,310) 0 $(1,310) During 2026, Colorado Co. stock was sold for $9,410. The fair value of the stock on December 31, 2026, was Clemson Corp.stock- $19,410; Buffaloes Co. stock-$20,700. None of the equity investments result in significant influence. Prepare the adjusting journal entry needed on December 31, 2025. Prepare the journal entry to record the sale of the Colorado Co. stock during 2026. Prepare the adjusting journal entry needed on December 31, 2026. (List all debit entries before credit entries. 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 O for the amounts.)
On December 21, 2025, Blue Company provided you with the following information regarding its equity investments. Investments Clemson Corp. stock Colorado Co. stock December 31, 2025 Buffaloes Co. stock Total of portfolio Previous fair value adjustment balance Fair value adjustment-Cr. (a) (b) (c) Cost $20,200 9,900 20,200 $50,300 Fair Value Unrealized Gain (Loss) $(900) (1,000) $19,300 8,900 20,790 $48,990 590 (1,310) 0 $(1,310) During 2026, Colorado Co. stock was sold for $9,410. The fair value of the stock on December 31, 2026, was Clemson Corp.stock- $19,410; Buffaloes Co. stock-$20,700. None of the equity investments result in significant influence. Prepare the adjusting journal entry needed on December 31, 2025. Prepare the journal entry to record the sale of the Colorado Co. stock during 2026. Prepare the adjusting journal entry needed on December 31, 2026. (List all debit entries before credit entries. 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 O for the amounts.)
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 18E: Trading Securities Pear Investments began operations in 2020 and invests in securities classified as...
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