E17-7 - 1,400 Securities Fair Value Adjustment (Trading) 2...

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E17-7 the following information regarding its trading securities. Investments (Trading) Cost Fair Value Clemson Corp. Stock $20,000  $19,000  Colorado Co. Stock 10,000 9,000 Buffaloes Co. Stock 20,000 20,600 Total of Portfolio $50,000  $48,600  Previous securities fair value adjustment balance Securities fair value adjustment--Cr. During 2007, Colorado Company stock was sold for $9,400. The fair value of the stock on December 31, 2007, was: Clemson Corp. stock—$19,100; Buffaloes Co. stock—$20,500. Instructions 1 Prepare the adjusting journal entry needed on December 31, 2006. 2 Prepare the journal entry to record the sale of the Colorado Company stock during 2 3 Prepare the adjusting journal entry needed on December 31, 2007. SOLUTIONS 1 December 31, 2006 Unrealized Holding Gain or Loss--Income
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Unformatted text preview: 1,400 Securities Fair Value Adjustment (Trading) 2 During 2007 Cash 9,400 Loss on Sale of Securities 600 Trading Securities 3 December 31, 2006 Securities Cost Fair Value Clemson Corp. Stock $20,000 $19,100 ($900) Buffaloes Co. Stock 20,000 20,500 500 Total of Portfolio $40,000 $39,600 -400 Previous Securities Fair Value-1,400 adjustment balance Cr. Securities fair value $1,000 adjustment Dr. (LO 3) (Trading Securities Entries) On December 21, 2006, Bucky Katt Company provided you wi Unrealized Gain (Loss) Securities fair value adjustment (Trading) 1,000 Unrealized Holding Gain or Loss 1,000 Income Unrealized Gain (Loss) ($1,000)-1,000 600-1,400 ($1,400) 2007. 1,400 10,000 ith 0...
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This note was uploaded on 08/14/2011 for the course ACCT 423 taught by Professor R.becksted during the Spring '09 term at University of Phoenix.

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E17-7 - 1,400 Securities Fair Value Adjustment (Trading) 2...

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