E17-7 - Description/Account(c Prepare the adjusting journal...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Answer E17-7 (Trading Securities Entries) On December 21, 2012, Zurich Company provided you with the following information regarding its Equity Investments (Trading). December 31, 2012 Investments(Trad ing) Cost Fair Value Unrealized Gain (Loss) Stargate Corp. stock $20,000   $19,000   $(1,000)   Carolina Co. stock 10,000   9,000   (1,000)   Vectorman Co. stock 20,000   20,600   600    Total Portfolio $50,000   $48,600   (1,400)   Previous securities fair value adjustment balance             -0-      Fair Value Adjustment (Trading)—Cr.         $(1,400)   During 2013, Carolina Company stock was sold for $9,500. The fair value of the stock on December 31, 2013, was: Stargate Corp. stock- $19,300; Vectorman Co. stock-$20,500. (a) Prepare the adjusting journal entry needed on December 31, 2012.   Description/Account        (b) Prepare the journal entry to record the sale of the Carolina Company stock during 2013.  (List multiple debit/credit entries from largest to smallest 
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Description/Account (c) Prepare the adjusting journal entry needed on December 31, 2013. Description/Account Solution E17-7 Description/Account Debit Credit (a) Unrealized Holding Gain or Loss—Income 1,400 Fair Value Adjustment (Trading) 1,400 (b) Cash 9,500 Loss on Sale of Securities 500 Trading Securities 10,000 (c) Fair Value Adjustment (Trading) 1,200 Fair Value Adjustment (Trading) 1,200 December 31, 2013 Securities Cost Fair Value Unrealized Gain (Loss) Stargate Corp. stock $20,000 $19,300 $(700) Vectorman Co. stock 20,000 20,500 500 Total Portfolio $40,000 $39,800 (200) Previous securities fair value adjustment balance—Cr. ($1,400) Fair Value Adjustment (Trading)—Dr. $1,200...
View Full Document

This note was uploaded on 03/21/2012 for the course ACC 102 taught by Professor Benz during the Spring '12 term at CUNY Baruch.

Page1 / 2

E17-7 - Description/Account(c Prepare the adjusting journal...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online