On December 21, 2012, Zurich Company provided you with the following information regarding its trading securities.
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December 31, 2012
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|
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
|
)
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|
Vectorman Co. stock
|
|
20,320
|
|
21,010
|
|
690
|
|
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Total of portfolio
|
|
$51,580
|
|
$50,270
|
|
(1,310
|
)
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|
Previous fair value adjustment balance
|
|
|
|
|
|
0
|
|
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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
- Prepare the adjusting journal entry needed on December 31, 2012.
- Prepare the journal entry to record the sale of the Carolina Company stock during 2013.
- Prepare the adjusting journal entry needed on December 31, 2013.