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Recording Entries for Equity Investment: FV-NI Adjust FVA at Year-End At December 31, 2019, the portfolio of investments in equity securities measured at FV-NI held by Athletes Inc. is as follows. Investment Security Cost Fair Value Unrealized Holding Gain (Loss) Badger Common Stock (1,000 shares) $20,000 $19,750 $(250) Spartan Common Stock (1,600 shares) 25,000 25,500 500 Wildcat Common Stock (500 shares) 12,500 11,750 (750) Total $57,500 $57,000 $(500) On June 1, 2020, Athletes Inc. sold 200 shares of Spartan stock for $33 per share and 50 shares of Wildcat stock for $55 per share. Athletes Inc. purchased 200 shares of Gopher common stock for $35 per share on August 1, 2020. The fair value of the remaining stock held on December 31, 2020, is as follows: Badger common stock, $21,000; Spartan common stock, $18,000; Wildcat common stock, $10,400; and Gopher common stock, $7,200. a. Prepare the entry for the sale of Spartan and Wildcat common stock on June 1, 2020. b. Record the purchase of Gopher common stock on August 1, 2020. c. Prepare any adjusting entry needed on December 31, 2020.   Note: List multiple debits or credits (when applicable) in alphabetical order.   Date Account Name Dr. Cr. a. June 1, 2020 ?         ?         ?     b. Aug 1, 2020 ?         ?     c. Dec. 31, 2020 ?         ?

Recording Entries for Equity Investment: FV-NI Adjust FVA at Year-End At December 31, 2019, the portfolio of investments in equity securities measured at FV-NI held by Athletes Inc. is as follows. Investment Security Cost Fair Value Unrealized Holding Gain (Loss) Badger Common Stock (1,000 shares) $20,000 $19,750 $(250) Spartan Common Stock (1,600 shares) 25,000 25,500 500 Wildcat Common Stock (500 shares) 12,500 11,750 (750) Total $57,500 $57,000 $(500) On June 1, 2020, Athletes Inc. sold 200 shares of Spartan stock for $33 per share and 50 shares of Wildcat stock for $55 per share. Athletes Inc. purchased 200 shares of Gopher common stock for $35 per share on August 1, 2020. The fair value of the remaining stock held on December 31, 2020, is as follows: Badger common stock, $21,000; Spartan common stock, $18,000; Wildcat common stock, $10,400; and Gopher common stock, $7,200. a. Prepare the entry for the sale of Spartan and Wildcat common stock on June 1, 2020. b. Record the purchase of Gopher common stock on August 1, 2020. c. Prepare any adjusting entry needed on December 31, 2020.   Note: List multiple debits or credits (when applicable) in alphabetical order.   Date Account Name Dr. Cr. a. June 1, 2020 ?         ?         ?     b. Aug 1, 2020 ?         ?     c. Dec. 31, 2020 ?         ?

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
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Recording Entries for Equity Investment: FV-NI

Adjust FVA at Year-End
At December 31, 2019, the portfolio of investments in equity securities measured at FV-NI held by Athletes Inc. is as follows.

Investment Security Cost Fair Value Unrealized
Holding
Gain (Loss)
Badger Common Stock (1,000 shares) $20,000 $19,750 $(250)
Spartan Common Stock (1,600 shares) 25,000 25,500 500
Wildcat Common Stock (500 shares) 12,500 11,750 (750)
Total $57,500 $57,000 $(500)

On June 1, 2020, Athletes Inc. sold 200 shares of Spartan stock for $33 per share and 50 shares of Wildcat stock for $55 per share. Athletes Inc. purchased 200 shares of Gopher common stock for $35 per share on August 1, 2020. The fair value of the remaining stock held on December 31, 2020, is as follows: Badger common stock, $21,000; Spartan common stock, $18,000; Wildcat common stock, $10,400; and Gopher common stock, $7,200.

a. Prepare the entry for the sale of Spartan and Wildcat common stock on June 1, 2020.
b. Record the purchase of Gopher common stock on August 1, 2020.
c. Prepare any adjusting entry needed on December 31, 2020.

 

Note: List multiple debits or credits (when applicable) in alphabetical order.
  Date Account Name Dr. Cr.
a. June 1, 2020 ?    
    ?    
    ?    
b. Aug 1, 2020 ?    
    ?    
c. Dec. 31, 2020 ?    
    ?    
 
 
Recording Entries for Equity Investment: FV-NI Adjust FVA at Year-End At December 31, 2019, the portfolio of investments in equity securities measured at FV-NI held by Athletes Inc. is as follows. Unrealized Holding Investment Security Cost Fair Value Gain (Loss) Badger Common Stock (1,000 shares) $20,000 $19,750 $(250) Spartan Common Stock (1,600 shares) 25,000 25,500 500 Wildcat Common Stock (500 shares) 12,500 11,750 (750) Total $57,500 $57,000 $(500) On June 1, 2020, Athletes Inc. sold 200 shares of Spartan stock for $33 per share and 50 shares of Wildcat stock for $55 per share. Athletes Inc. purchased 200 shares of Gopher common stock for $35 per share on August 1, 2020. The fair value of the remaining stock held on December 31, 2020, is as follows: Badger common stock, $21,000; Spartan common stock, $18,000; Wildcat common stock, $10,400; and Gopher common stock, $7,200. a. Prepare the entry for the sale of Spartan and Wildcat common stock on June 1, 2020. b. Record the purchase of Gopher common stock on August 1, 2020. c. Prepare any adjusting entry needed on December 31, 2020. Note: List multiple debits or credits (when applicable) in alphabetical order. Date Account Name Dr. Cr. а. June 1, 2020 b. Aug 1, 2020 C. Dec. 31, 2020
Transcribed Image Text:Recording Entries for Equity Investment: FV-NI Adjust FVA at Year-End At December 31, 2019, the portfolio of investments in equity securities measured at FV-NI held by Athletes Inc. is as follows. Unrealized Holding Investment Security Cost Fair Value Gain (Loss) Badger Common Stock (1,000 shares) $20,000 $19,750 $(250) Spartan Common Stock (1,600 shares) 25,000 25,500 500 Wildcat Common Stock (500 shares) 12,500 11,750 (750) Total $57,500 $57,000 $(500) On June 1, 2020, Athletes Inc. sold 200 shares of Spartan stock for $33 per share and 50 shares of Wildcat stock for $55 per share. Athletes Inc. purchased 200 shares of Gopher common stock for $35 per share on August 1, 2020. The fair value of the remaining stock held on December 31, 2020, is as follows: Badger common stock, $21,000; Spartan common stock, $18,000; Wildcat common stock, $10,400; and Gopher common stock, $7,200. a. Prepare the entry for the sale of Spartan and Wildcat common stock on June 1, 2020. b. Record the purchase of Gopher common stock on August 1, 2020. c. Prepare any adjusting entry needed on December 31, 2020. Note: List multiple debits or credits (when applicable) in alphabetical order. Date Account Name Dr. Cr. а. June 1, 2020 b. Aug 1, 2020 C. Dec. 31, 2020
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