On December 21, 2017, Bonita Company provided you with the following information regarding its equity investments. December
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Question:
December 31, 2017 | |||||||
Investments (Trading) | Cost | Fair Value | Unrealized Gain (Loss) | ||||
| Clemson Corp. stock | $18,600 | $17,700 | $(1,100 | ) | |||
| Colorado Co. stock | 9,900 | 8,800 | (1,100 | ) | |||
| Buffaloes Co. stock | 18,600 | 19,190 | 590 | ||||
| Total of portfolio | $47,100 | $45,690 | (1,410 | ) | |||
| Previous fair value adjustment balance | 0 | ||||||
| Fair value adjustment—Cr. | $(1,410 | ) | |||||
During 2018, Colorado Company stock was sold for $9,270. The fair value of the stock on December 31, 2018, was Clemson Corp. stock—$17,800; Buffaloes Co. stock—$19,100. None of the equity investments result in significant influence.
| (a) | Prepare the adjusting journal entry needed on December 31, 2017. | |
| (b) | Prepare the journal entry to record the sale of the Colorado Co. stock during 2018. | |
| (c) | Prepare the adjusting journal entry needed on December 31, 2018. |
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Related Book For 
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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