On December 21, 2008, Bucky Katt Company provided you with the following information regarding its trading securities.

During 2009, Colorado Company stock was sold for $9,400. The fair value of the stock on December 31, 2009, was:
Clemson Corp. stock€”$19,100; Buffaloes Co. stock€”$20,500.
Instructions
(a) Prepare the adjusting journal entry needed on December 31, 2008.
(b) Prepare the journal entry to record the sale of the Colorado Company stock during 2009.
(c) Prepare the adjusting journal entry needed on December 31,2009.

Transcribed Image Text:

December 31, 2008 Investments (Trading) Cost Fair Value Unrealized Gain (Loss) Clemson Corp. stock Colorado Co. stock Buffaloes Co. stock Total of portfolio Previou Securities fair value adjustment Cr $19,000 20,000 10,000 20,000 $50,000 (1,000) (1,000) 600 9,000 20,600 $48,600 (1,400) s securities fair value adjustment balance $(1,400)