On December 21, 2020, Vaughn Company provided you with the following information regarding its equity investments. Securities Cost Fair Value Unrealized Gain (Loss) SC Corp. stock $43,300 39,520 $(3,780 ) True Co. stock 48,800 55,390 6,590 Plus, Inc. stock 30,200 29,882 (318 ) Total of portfolio $122,300 $124,792 2,492 Previous fair value adjustment balance -0- Fair value adjustment – Dr. $2,492 During 2021, the Plus, Inc. stock was sold for $30,750. The fair value of the stock on December 31, 2021, was: SC Corp. stock—$40,070; True Co. stock—$51,080. None of the equity investments result in significant influence. Prepare the adjusting journal entry needed on December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 enter an account title for the journal entry on December 31, 2017 enter a debit amount enter a credit amount enter an account title for the journal entry on December 31, 2017 enter a debit amount enter a credit amount Prepare the journal entry to record the sale of the Plus, Inc. stock during 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit During 2021 enter an account title for the journal entry during 2018 enter a debit amount enter a credit amount enter an account title for the journal entry during 2018 enter a debit amount enter a credit amount enter an account title for the journal entry during 2018 enter a debit amount enter a credit amount Prepare the adjusting journal entry needed on December 31, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2021 enter an account title for the journal entry on December 31, 2018 enter a debit amount enter a credit amount enter an account title for the journal entry on December 31, 2018 enter a debit amount enter a credit amount
On December 21, 2020, Vaughn Company provided you with the following information regarding its equity investments. Securities Cost Fair Value Unrealized Gain (Loss) SC Corp. stock $43,300 39,520 $(3,780 ) True Co. stock 48,800 55,390 6,590 Plus, Inc. stock 30,200 29,882 (318 ) Total of portfolio $122,300 $124,792 2,492 Previous fair value adjustment balance -0- Fair value adjustment – Dr. $2,492 During 2021, the Plus, Inc. stock was sold for $30,750. The fair value of the stock on December 31, 2021, was: SC Corp. stock—$40,070; True Co. stock—$51,080. None of the equity investments result in significant influence. Prepare the adjusting journal entry needed on December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 enter an account title for the journal entry on December 31, 2017 enter a debit amount enter a credit amount enter an account title for the journal entry on December 31, 2017 enter a debit amount enter a credit amount Prepare the journal entry to record the sale of the Plus, Inc. stock during 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit During 2021 enter an account title for the journal entry during 2018 enter a debit amount enter a credit amount enter an account title for the journal entry during 2018 enter a debit amount enter a credit amount enter an account title for the journal entry during 2018 enter a debit amount enter a credit amount Prepare the adjusting journal entry needed on December 31, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2021 enter an account title for the journal entry on December 31, 2018 enter a debit amount enter a credit amount enter an account title for the journal entry on December 31, 2018 enter a debit amount enter a credit amount
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...
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Question
On December 21, 2020, Vaughn Company provided you with the following information regarding its equity investments.
During 2021, the Plus, Inc. stock was sold for $30,750. The fair value of the stock on December 31, 2021, was: SC Corp. stock—$40,070; True Co. stock—$51,080. None of the equity investments result in significant influence.
Securities | Cost | Fair Value | Unrealized Gain (Loss) |
||||
---|---|---|---|---|---|---|---|
SC Corp. stock | $43,300 | 39,520 | $(3,780 | ) | |||
True Co. stock | 48,800 | 55,390 | 6,590 | ||||
Plus, Inc. stock | 30,200 | 29,882 | (318 | ) | |||
Total of portfolio | $122,300 | $124,792 | 2,492 | ||||
Previous fair value adjustment balance | -0- | ||||||
Fair value adjustment – Dr. | $2,492 |
During 2021, the Plus, Inc. stock was sold for $30,750. The fair value of the stock on December 31, 2021, was: SC Corp. stock—$40,070; True Co. stock—$51,080. None of the equity investments result in significant influence.
Prepare the adjusting journal entry needed on December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Date
|
Account Titles and Explanation
|
Debit
|
Credit
|
---|---|---|---|
Dec. 31, 2020
|
enter an account title for the journal entry on December 31, 2017
|
enter a debit amount
|
enter a credit amount
|
enter an account title for the journal entry on December 31, 2017
|
enter a debit amount
|
enter a credit amount
|
Prepare the journal entry to record the sale of the Plus, Inc. stock during 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Date
|
Account Titles and Explanation
|
Debit
|
Credit
|
---|---|---|---|
During 2021
|
enter an account title for the journal entry during 2018
|
enter a debit amount
|
enter a credit amount
|
enter an account title for the journal entry during 2018
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title for the journal entry during 2018
|
enter a debit amount
|
enter a credit amount
|
Prepare the adjusting journal entry needed on December 31, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Date
|
Account Titles and Explanation
|
Debit
|
Credit
|
---|---|---|---|
Dec. 31, 2021
|
enter an account title for the journal entry on December 31, 2018
|
enter a debit amount
|
enter a credit amount
|
enter an account title for the journal entry on December 31, 2018
|
enter a debit amount
|
enter a credit amount
|
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