Question

Culver Company has a stock portfolio valued at $3,500. Its cost was $2,700. If the Fair Value Adjustment account has a debit balance of $140, prepare the journal entry at year-end. (Credit account titles are automatically indented when 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.)

Answer 1

Answer:

Dr Fair Value Adjustment (Available-for-Sale) $660

Cr Unrealized Holding Gain or Loss—Equity $660

Explanation:

Culver Company Journal entry

Dr Fair Value Adjustment (Available-for-Sale) $660

Cr Unrealized Holding Gain or Loss—Equity $660

Fair Value Adjustment (Available-for-Sale)

Debit Balance $140

Adjustment $660

($3,500-$2,840)

Balance 800