ACC Question1

On December 21, 2012, Zurich Company provided you with the following information regarding its trading securities.December 31, 2012Investments (Trading) Cost Fair Value Unrealized Gain (Loss)Stargate Corp. stock $23,880 $22,880 $(1,000)Carolina Co. stock 12,840 11,840 (1,000)Vectorman Co. stock 23,880 24,440 560 Total of portfolio $60,600 $59,160 (1,440)Previous fair value adjustment balance     0 Fair value adjustment—Cr.     $(1,440)During 2013, Carolina Company stock was sold for $12,520. The fair value of the stock on December 31, 2013, was: Stargate Corp. stock—$23,150; Vectorman Co. stock—$24,310.(a) Prepare the adjusting journal entry needed on December 31, 2012.(b) Prepare the journal entry to record the sale of the Carolina Company stock during 2013.(c) Prepare the adjusting journal entry needed on December 31, 2013.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)No.Account Titles and ExplanationDebitCredit(a) [removed][removed][removed]  [removed][removed][removed](b) [removed][removed][removed]  [removed][removed][removed]  [removed][removed][removed](c) [removed][removed][removed]  [removed][removed][removed]