ACC Question1
On December 21, 2012, Zurich Company provided you with the following information regarding its trading securities.
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December 31, 2012
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Investments (Trading)
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Cost
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Fair Value
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Unrealized Gain (Loss)
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| Stargate Corp. stock | $23,880 | $22,880 | $(1,000 | ) | |||
| Carolina Co. stock | 12,840 | 11,840 | (1,000 | ) | |||
| Vectorman Co. stock | 23,880 | 24,440 | 560 | ||||
| Total of portfolio | $60,600 | $59,160 | (1,440 | ) | |||
| Previous fair value adjustment balance | 0 | ||||||
| Fair value adjustment—Cr. | $(1,440 | ) | |||||
During 2013, Carolina Company stock was sold for $12,520. The fair value of the stock on December 31, 2013, was: Stargate Corp. stock—$23,150; Vectorman Co. stock—$24,310.
| (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.)
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No.
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Account Titles and Explanation
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Debit
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Credit
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(b)
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(c)
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List Of Accounts
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