On December 21, 2013, Bucky Katt Company provided

E17-7 On December 21, 2013, Bucky Katt Company provided you with the following information regarding its trading securities.

December 31, 2013

Investments (Trading)              Cost                 Fair Value        Unrealized Gain (Loss)

Clemson Corp. stock               $20,000           $19,000           $(1,000)

Colorado Co. stock                  10,000                         9,000               (1,000)

Buffaloes Co. stock                 20,000                         20,600                         600

Total of portfolio                     $50,000           $48,600           (1,400)

Previous fair value adjustment balance                                                0

Fair value adjustment—Cr.                                                      $(1,400)

During 2014, Colorado Company stock was sold for $9,400. The fair value of the stock on December 31, 2014, was Clemson Corp. stock—$19,100; Buffaloes Co. stock—$20,500.

(a) Prepare the adjusting journal entry needed on December 31, 2013.

(b) Prepare the journal entry to record the sale of the Colorado Company stock during 2014.

(c) Prepare the adjusting journal entry needed on December 31, 2014.

(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.)