At December 31, 2020, the available-for-sale debt portfolio for Whispering, Inc. is as follows. Security Cost Fair Value Unrealized Gain (Loss) A $ 27,125 $ 23,250 $( 3,875 ) B 19,375 21,700 2,325 C 35,650 39,525 3,875 Total $ 82,150 $ 84,475 2,325 Previous fair value adjustment balance—Dr. 620 Fair value adjustment—Dr. $ 1,705 On January 20, 2021, Whispering, Inc. sold security A for $ 23,405. The sale proceeds are net of brokerage fees. (a) Prepare the adjusting entry at December 31, 2020, to report the portfolio at fair value. (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.)
At December 31, 2020, the available-for-sale debt portfolio for Whispering, Inc. is as follows. Security Cost Fair Value Unrealized Gain (Loss) A $ 27,125 $ 23,250 $( 3,875 ) B 19,375 21,700 2,325 C 35,650 39,525 3,875 Total $ 82,150 $ 84,475 2,325 Previous fair value adjustment balance—Dr. 620 Fair value adjustment—Dr. $ 1,705 On January 20, 2021, Whispering, Inc. sold security A for $ 23,405. The sale proceeds are net of brokerage fees. (a) Prepare the adjusting entry at December 31, 2020, to report the portfolio at fair value. (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.)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 1MC
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Question
At December 31, 2020, the available-for-sale debt portfolio for Whispering, Inc. is as follows.
On January 20, 2021, Whispering, Inc. sold security A for $ 23,405. The sale proceeds are net of brokerage fees.
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Security
|
Cost
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Fair Value
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Unrealized
Gain (Loss) |
||||
| A | $ 27,125 | $ 23,250 | $( 3,875 | ) | |||
| B | 19,375 | 21,700 | 2,325 | ||||
| C | 35,650 | 39,525 | 3,875 | ||||
| Total | $ 82,150 | $ 84,475 | 2,325 | ||||
| Previous fair value adjustment balance—Dr. | 620 | ||||||
| Fair value adjustment—Dr. | $ 1,705 |
On January 20, 2021, Whispering, Inc. sold security A for $ 23,405. The sale proceeds are net of brokerage fees.
(a)
Prepare the adjusting entry at December 31, 2020, to report the portfolio at fair value. (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.)
|
Account Titles and Explanation
|
Debit
|
Credit
|
|
|
|
|
|
|
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