Carlsville Company began operations in the current year and had no prior stock investments. The...
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Accounting
Carlsville Company began operations in the current year and had no prior stock investments. The following transactions are from its short-term stock investments with insignificant influence. Prepare journal entries to record these transactions. On December 31, prepare the adjusting entry to record the fair value adjustment for the portfolio of stock investments.
July
22
Purchased 1,700 shares of Hunt Corp. at $25 per share.
Sept.
5
Received a $2 cash dividend for each share of Hunt Corp.
Sept.
27
Purchased 3,500 shares of HCA at $26 per share.
Oct.
3
Sold 1,700 shares of Hunt at $20 per share.
Oct.
30
Purchased 1,200 shares of Black & Decker at $41 per share.
Dec.
17
Received a $3 cash dividend for each share of Black & Decker.
Dec.
31
Fair value of the short-term stock investments is $143,000.
Fair value of the short-term stock investments is $143,000. Record the year-end adjustment to fair value, if any. ( I need help determining the value to record, I know we debit "Fair value adjustment - stock" and credit "unrealized gain - income"
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