Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
Bartleby Related Questions Icon

Related questions

Question
On December 21, 2025, Pina Company provided you with the following information regarding its equity investments.
December 31, 2025
Investments
Cost
Fair Value
Unrealized Gain (Loss)
Clemson Corp. stock
$19,300
$18,200
$(1,100)
Colorado Co. stock
10,400
9,400
(1,000)
Buffaloes Co. stock
19,300
19,930
630
Total of portfolio
$49,000
$47,530
(1,470)
Previous fair value adjustment balance
0
Fair value adjustment-Cr.
$(1,470)
During 2026, Colorado Co. stock was sold for $9,910. The fair value of the stock on December 31, 2026, was Clemson Corp. stock-
$18,310; Buffaloes Co. stock-$19,830. None of the equity investments result in significant influence.
(a)
Prepare the adjusting journal entry needed on December 31, 2025.
(b)
Prepare the journal entry to record the sale of the Colorado Co. stock during 2026.
(c)
Prepare the adjusting journal entry needed on December 31, 2026.
expand button
Transcribed Image Text:On December 21, 2025, Pina Company provided you with the following information regarding its equity investments. December 31, 2025 Investments Cost Fair Value Unrealized Gain (Loss) Clemson Corp. stock $19,300 $18,200 $(1,100) Colorado Co. stock 10,400 9,400 (1,000) Buffaloes Co. stock 19,300 19,930 630 Total of portfolio $49,000 $47,530 (1,470) Previous fair value adjustment balance 0 Fair value adjustment-Cr. $(1,470) During 2026, Colorado Co. stock was sold for $9,910. The fair value of the stock on December 31, 2026, was Clemson Corp. stock- $18,310; Buffaloes Co. stock-$19,830. None of the equity investments result in significant influence. (a) Prepare the adjusting journal entry needed on December 31, 2025. (b) Prepare the journal entry to record the sale of the Colorado Co. stock during 2026. (c) Prepare the adjusting journal entry needed on December 31, 2026.
SAVE
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
bartleby
Unlock instant AI solutions
Tap the button
to generate a solution
Click the button to generate
a solution
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning