Prepare the adjusting journal entry needed on december

Assignment Help Financial Accounting
Reference no: EM13169571

On December 21, 2012, Zurich Company provided you with the following information regarding its 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.

Reference no: EM13169571

Questions Cloud

Discuss the methods of gathering data in the field : Discuss the methods of gathering data in the field and problems associated with them.  Make up a hypothesis. Suggest it could be tested and potentially falsified. How does your hypotheses relate to a theory?  What are some anthropological theories ..
Government''s management of public opinion during world war : Which of the following is NOT true regarding the government's management of public opinion during World War II? All the following are considered major Great Society programs EXCEPT the:
State the electrode follows the nernst equation : Assume that the electrode follows the Nernst equation, the temperature is at 25°C, and that the activity coefficient of X is 1.
Determine the value of k the thermodynamic equilibrium : Determine the value of K (the thermodynamic equilibrium constant) at each temperature. b) Assuming that ?H°rxn is independent of temperature, determine the value of ?H°rxn from these data.
Prepare the adjusting journal entry needed on december : Prepare the adjusting journal entry needed on December 31, 2012 and prepare the journal entry to record the sale of the Carolina Company stock during 2013.
Calculate the molarity of the sodium hydroxide : In the titration, 34.67 mL of the sodium hydroxide solution was required to react with 0.1082 g KHP. Calculate the molarity of the sodium hydroxide.
Explain how many grams of the excess reactant : What is the % by mass of CaCl2.2H2O in the salt mixture B. how many grams of the excess reactant K2C2O4.H2O reacted in the mixture C. How many grams of the K2C2O4. H2O in the salt mixture remain unreacted
How many liters of carbon dioxide are formed by combustion : At 1.00 atm and 23 C, how many liters of carbon dioxide are formed by the combustion of 3.40g of butane?
Psychological testing : Do you feel that background checks should be performed on volunteers, credit checks? or psychological testing?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Evaluate the ratio of fixed assets to long-term liabilities

Evaluate the following: (a) ratio of fixed assets to long-term liabilities, (b) ratio of liabilities to stockholders' equity, (c) ratio of net sales to assets, (d) rate earned on total assets, (e) rate earned on stockholders' equity, and (f) rate ..

  The dividend discount

Calculate the annual rate of return for each asset in each of the 10 preceding years, and those values to find the average annual return for each asset over the 10-year period.

  Explain what is meant by restricted stock units (rsu)

Explain what is meant by "Restricted Stock Units (RSU)” and provide extracts of the disclosure notes for 2 public companies that have these, noting any distinguishing features between the 2 companies’ RSU plans.

  What would be the following the rnoa

What would be the following the RNOA of the subsequent company?

  Illustrate what would be some advantages and disadvantages

Should the government mandate minimum standards for controlling and securing information and if so illustrate what would be some advantages and disadvantages?

  Multiple choice questions on cvp analysis

how many units of Product X must be purchased from the supplier during the month and Multiple choice questions on CVP Analysis.

  Find the net present value of this investment

Calculate the net present value of this investment using a cost of capital of 16%. Based on this analysis, would the investment be made? Explain your answer.

  Preparing an income statement calculates gross margin

Which costs will change with an increase in activity within the relevant range and Which of the following approaches to preparing an income statement calculates gross margin?

  Common equity using the capm approach

what is its cost of common equity and what will be the firm's cost of common equity using the CAPM approach

  Elucidate the propriety of the company accounting treatment

What revenue recognition issues should Nancy consider? Elucidate the propriety of the company's accounting treatment for each of the issues identified should Nancy consider?

  Explain the purpose of adjusting entries

Provide me an example of a transaction that would affect the accounting equation. You will do this for your employer, college or self and briefly define and explain the purpose of adjusting entries?

  Calculation of average issue price

Calculation of average issue price and sale price of common stock and prepare balance sheet of Herman Corporation on December 31, 2008

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd