On December 21, 2012, Zurich Company provided you with the following information

Question

On December 21, 2012, Zurich Company provided you with the following information regarding its trading securities.

December 31, 2012 Investments (Trading)
Cost
Fair Value
Unrealized Gain (Loss) Stargate Corp. stock
$20,870
$19,870
$(1,000 ) Carolina Co. stock
10,730
9,730
(1,000 ) Vectorman Co. stock
20,870
21,570
700 Total of portfolio
$52,470
$51,170
(1,300 ) Previous fair value adjustment balance




0 Fair value adjustment December 31, 2012 Investments (Trading) Cost Fair Value Unrealized Gain (Loss) December 31, 2012 Investments (Trading)
Cost
Fair Value
Unrealized Gain (Loss) Stargate Corp. stock
$20,870
$19,870
$(1,000 ) Carolina Co. stock
10,730
9,730
(1,000 ) Vectorman Co. stock
20,870
21,570
700 Total of portfolio
$52,470
$51,170
(1,300 ) Previous fair value adjustment balance




0 Fair value adjustment On December 21, 2012, Zurich Company provided you with the following information regarding its trading securities. During 2013, Carolina Company stock was sold for $10,430. The fair value of the stock on December 31, 2013, was: Stargate Corp. stock-$20,270; Vectorman Co. stock-$21,420. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Explanation / Answer

Requirement A: Date Description/Account Debit Credit 12/31/2012 Unrealized Holding Gain or Loss - Income $         1,300       Securities Fair Value Adjustment - Trading $         1,300 Requirement B: Date Description/Account Debit Credit 2013 Cash           10,430 Loss on Sale of Securities               300      Trading Securities           10,730 Explanation: cost of Carolina Co. stock Requirement C: December 31, 2013 Investments(Trading) Cost Fair Value Unrealized Gain (Loss) Stargate Corp. stock           20,870           20,270              (600) Vectorman Co. stock           20,870           21,420               550 Total Portfolio           41,740           41,690                (50) Explanation: value of the stocks declined at end of 2013. Previous securities fair value adjustment balance            (1,300) Securities fair value adjustment

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