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. |

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