Prepare the adjusting journal entry needed on December
Course:- Accounting Basics
Reference No.:- EM132283991

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Accounting Basics

Question - On December 21, 2017, Ivanhoe Company provided you with the following information regarding its equity investments.

Clemson Corp. stock $19,400 $18,500 $(900)

Colorado Co. stock 10,600 9,600 (1,000)

Buffaloes Co. stock 19,400 19,990 590

Total of portfolio $49,400 $48,090 (1,310)

Previous fair value adjustment balance 0

Fair value adjustment-Cr. $(1,310)

During 2018, Colorado Company stock was sold for $10,140. The fair value of the stock on December 31, 2018, was Clemson Corp. stock-$18,610; Buffaloes Co. stock-$19,900. None of the equity investments result in significant influence.

(a) Prepare the adjusting journal entry needed on December 31, 2017.

(b) Prepare the journal entry to record the sale of the Colorado Co. stock during 2018.

(c) Prepare the adjusting journal entry needed on December 31, 2018.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
On September 3, 2008, Jackson Corporation purchases goods for a U.S. dollar equivalent of $17,000 from a Swiss company. The transaction is denominated in Swiss francs (SFr).
1.Enter the transactions in a general journal. Enter transactions from April 1-5 on page 1, April 7-18 on page 2, April 21-29 and the first two entries for April 30 on page
Assume the same facts as those assumed for part (a), except that the 1,000 options were issued on October 1, 2010 (rather than in 2009). The average market price during the la
(a) The Humber bridge is closed because of high winds (the only alternative route is a much longer and more expensive journey via Goole). (b) As a conservation measure, the
Trepid Manufacturing Company prepared a static budget of 40,000 direct labor hours, with estimated overhead costs of $200,000 for variable overhead and $60,000 for fixed ove
The central stores fund of cook city provides centralized management of purchasing, storage,and issue of supplies for the entire city. For the following summarized transacti
Calculate division margins in percentage terms prior to allocating fixed overhead costs. Allocate indirect costs to the three divisions using each of the three allocation base
The primary purpose of the statement of cash flows is to provide information about a companys: a. cash receipts and cash payments. Corporations should record dividends as a