Question 2 On December 21, 2020, Vaughn Company provided you with the following information regarding its equity investments. December 31, 2020 Fair Unrealized Gain Investments (Trading) Cost Value (Loss) Clemson Corp. stock $18,500 ৪,000 $19,500 $(1,000 ) Colorado Co. stock 9,100 (1,100 ) Buffaloes Co. stock 19,500 20,140 640 Total of portfolio $48,100 $46,640 (1,460 ) Previous fair value adjustment balance Fair value adjustment-Cr. $(1,460 ) During 2021, Colorado Co. stock was sold for $8,480. The fair value of the stock on December 31, 2021, was Clemson Corp. stock-$18,600; Buffaloes Co. stock-$20,040. None of the equity investments result in significant influence. (a yourmar eE (b) Prepare the journal entry to record the sale of the Colorado Co. stock during 2021.

Question 2 On December 21, 2020, Vaughn Company provided you with the following information regarding its equity investments. December 31, 2020 Fair Unrealized Gain Investments (Trading) Cost Value (Loss) Clemson Corp. stock $18,500 ৪,000 $19,500 $(1,000 ) Colorado Co. stock 9,100 (1,100 ) Buffaloes Co. stock 19,500 20,140 640 Total of portfolio $48,100 $46,640 (1,460 ) Previous fair value adjustment balance Fair value adjustment-Cr. $(1,460 ) During 2021, Colorado Co. stock was sold for $8,480. The fair value of the stock on December 31, 2021, was Clemson Corp. stock-$18,600; Buffaloes Co. stock-$20,040. None of the equity investments result in significant influence. (a yourmar eE (b) Prepare the journal entry to record the sale of the Colorado Co. stock during 2021.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 22E

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