C has the following investments it bought during 2012. C still owns the stocks as of...

60.1K

Verified Solution

Question

Accounting

C has the following investments it bought during 2012. C stillowns the stocks as of 12-31-14.
Original              Fair Value
Cost        12-31-12      12-31-13      12-31-14
Jungle stock $20,000      $21,000       $24,000      $27,000
Regal stock $40,000      $41,000       $35,000      $42,000
Evan stock $14,000      $15,000       $17,000      $13,000
Leia stock $36,000      $37,000       $55,000
None of the stocks pay C a dividend. On 04-14-14, C sold all ofthe Leia stock for $54,000.
Assume C only prepares AJEs every December 31. Prepare theentries C should make on:
December 31, 2012.
December 31, 2013.
April 14, 2014.
December 31, 2014.

Answer & Explanation Solved by verified expert

3.8 Ratings (381 Votes)

Adjusting entries in the books of C Date Description Debit Credit 31Dec12 Fair value adjustmentJungle Stock 1000 Unrealised gain on fair value adjustment 1000 To record unrealised gain due to increase in fair value 31Dec12 Fair value adjustmentRegal Stock 1000 Unrealised gain on fair value adjustment 1000 To record unrealised gain due to increase in fair value See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member