Question 5

On December 31, 2016, Riverbed Corp. provided you with the following pre-adjustment information regarding its portfolio of investments held for short-term profit-taking:

		December 31, 2016
Investments		Carrying Amount				Fair Value
Moonstar Corp. shares			$21,000			$19,600
Bilby Corp. shares			10,500			9,300
Radius Ltd. shares			20,600			21,200
Total portfolio			$52,100			$50,100

During 2017, the Bilby Corp. shares were sold for $10,000. The fair values of the securities on December 31, 2017, were as follows: Moonstar Corp. shares $20,500 and Radius Ltd. shares $21,500. Dividends and other investment income and losses are all reported in one investment income account.

Prepare the adjusting journal entry needed on December 31, 2016. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit

SHOW LIST OF ACCOUNTS

Prepare the journal entry to record the sale of the Bilby Corp. shares during 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit

SHOW LIST OF ACCOUNTS

Prepare the adjusting journal entry needed on December 31, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit