Adjust FVA at Year-End An investor purchased 50 shares of Mallard common stock at $20 per...

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Adjust FVA at Year-End An investor purchased 50 shares of Mallard common stock at $20 per share on March 15. On December 31, the stock was quoted at $19 per share and Mallard declared and paid a dividend of $1.50 per share. On June 5 of the following year, the investor sold all 50 shares for $22 per share. On December 31 of each year, the Fair Value Adjustment account is adjusted. Assuming the investment is measured at FV-NI, provide the journal entries to be made at each of the following dates. a. March 15, Year 1. b. December 31, Year 1. c. June 5, Year 2. d. December 31, Year 2. Note: If a journal entry isn't required for the transaction, select "N/A-Debit" and "N/A-Credit" as the account names and leave the Dr. and Cr. answers blank (zero). Date Account Name (a) Mar. 15, Year 1 Investment in Stock Cash (b1) Dec. 31, Year 1 To record investment purchase. Cash Dividend Revenue To record dividends. (b2) Dec. 31, Year 1 Unrealized Gain or Loss-Income Debit 1,000 0 Credit 0 1,000 75 0 0 75 50 Fair Value Adjustment-Equity Securities 0 (c) June 5, Year 2 To adjust investment to fair value. Cash Investment in Stock Gain on Sale of Investment 1,100 0 0 To record sale of investment. (d) Dec. 31, Year 2 Fair Value Adjustment-Equity Securities 100 Gain on Sale of Investment 0 To adjust FVA account at year-end. 0 50 0 1,000 100 0% 100 * Adjust FVA at Year-End An investor purchased 50 shares of Mallard common stock at $20 per share on March 15. On December 31, the stock was quoted at $19 per share and Mallard declared and paid a dividend of $1.50 per share. On June 5 of the following year, the investor sold all 50 shares for $22 per share. On December 31 of each year, the Fair Value Adjustment account is adjusted. Assuming the investment is measured at FV-NI, provide the journal entries to be made at each of the following dates. a. March 15, Year 1. b. December 31, Year 1. c. June 5, Year 2. d. December 31, Year 2. Note: If a journal entry isn't required for the transaction, select "N/A-Debit" and "N/A-Credit" as the account names and leave the Dr. and Cr. answers blank (zero). Date Account Name (a) Mar. 15, Year 1 Investment in Stock Cash (b1) Dec. 31, Year 1 To record investment purchase. Cash Dividend Revenue To record dividends. (b2) Dec. 31, Year 1 Unrealized Gain or Loss-Income Debit 1,000 0 Credit 0 1,000 75 0 0 75 50 Fair Value Adjustment-Equity Securities 0 (c) June 5, Year 2 To adjust investment to fair value. Cash Investment in Stock Gain on Sale of Investment 1,100 0 0 To record sale of investment. (d) Dec. 31, Year 2 Fair Value Adjustment-Equity Securities 100 Gain on Sale of Investment 0 To adjust FVA account at year-end. 0 50 0 1,000 100 0% 100 *