On December 31, 2019, Culver Corp. provided you with the following pre-adjustment information regarding its...
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Accounting
On December 31, 2019, Culver Corp. provided you with the following pre-adjustment information regarding its portfolio of investments held for short-term profit-taking:
December 31, 2019
Investments
Carrying Amount
Fair Value
Moonstar Corp. shares
$18,000
$17,500
Bilby Corp. shares
9,000
8,300
Radius Ltd. shares
18,400
19,000
Total portfolio
$45,400
$44,800
During 2020, the Bilby Corp. shares were sold for $8,500. The fair values of the securities on December 31, 2020, were as follows: Moonstar Corp. shares $17,700 and Radius Ltd. shares $18,900. The company does not recognize and report dividends and other components of investment gains and losses separately.
Prepare the journal entry to record the sale of the Bilby Corp. shares during 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation
Debit
Credit
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
Answer & Explanation
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