Zurich Company _trading securities

December 31, 2012
Investments (Trading)		Cost		Fair Value		Unrealized Gain (Loss)
Stargate Corp. stock		$20,320		$19,320		$(1,000	)
Carolina Co. stock		10,940		9,940		(1,000	)
Vectorman Co. stock		20,320		21,010		690
Total of portfolio		$51,580		$50,270		(1,310	)
Previous fair value adjustment balance						0
Fair value adjustment—Cr.						$(1,310	)

During 2013, Carolina Company stock was sold for $10,490. The fair value of the stock on December 31, 2013, was: Stargate Corp. stock—$19,600; Vectorman Co. stock—$20,830.

(a)		Prepare the adjusting journal entry needed on December 31, 2012.
(b)		Prepare the journal entry to record the sale of the Carolina Company stock during 2013.
(c)		Prepare the adjusting journal entry needed on December 31, 2013.