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||$20,320||$19,320||$(1,000||)|
|Carolina Co. stock||10,940||9,940||(1,000||)|
|Vectorman Co. stock||20,320||21,010||690|
|Total of portfolio||$51,580||$50,270||(1,310||)|
|Previous fair value adjustment balance||0|
|Fair value adjustment—Cr.||$(1,310||)|
During 2013, Carolina Company stock was sold for $10,490. The fair value of the stock on December 31, 2013, was: Stargate Corp. stock—$19,600; Vectorman Co. stock—$20,830.
|(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.|