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Prepare the adjusting journal entry needed on December

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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.

Reference no: EM132283991

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