Acc423 Intermediate Accounting: E17-7 On December 21, 2010, Zurich Company provided you

Acc423 Intermediate Accounting

E17-7 (Trading Securities Entries)
On December 21, 2010, Zurich Company provided you with the following information regarding its trading securities.
December 31, 2010
Investments(Trading) Cost Fair Value Unrealized Gain (Loss)
Stargate Corp. stock 20,000 19,000 (1,000)
Carolina Co. stock 10,000 9,000 (1,000)
Vectorman Co. stock 20,000 20,600 600
Total Portfolio 50,000 48,600 (1,400)
Previous securities fair value adjustment balance -
Securities fair value adjustment—Cr. $(1,400)
During 2011, Carolina Company stock was sold for $9,500. The fair value of the stock on December 31, 2011, was: Stargate Corp. stock-$19,300; Vectorman Co. stock-$20,500.
Instructions:
(a) Prepare the adjusting journal entry needed on December 31, 2010.
(b) Prepare the journal entry to record the sale of the Carolina Company stock during 2011. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)
(c) Prepare the adjusting journal entry needed on December 31, 2011.
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