er part (d) and s

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 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...
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E17-13. Please answer part (d) and show all workings clearly. 

E17.13 (LO 2) (Equity Investment Entries and Financial
Statement Presentation) At December 31, 2022, the equity
investment portfolio for Wenger, Inc. is as follows.
Investment
Cost
Fair Value
Unrealized Gain (Loss)
A
$17,500
$15,000
$(2,500)
B
12,500
14,000
1,500
23,000
25,500
2,500
Total
$53,000
$54,500
1,500
Previous fair value adjustment balance-Dr.
Fair value adjustment–Dr.
200
$1,300
On January 20, 2023, Wenger, Inc. sold investment A for $15,300. The
sale proceeds are net of brokerage fees.
Instructions
a. Prepare the adjusting entry at December 31, 2022, to report the
portfolio at fair value.
b. Show the statement of financial position presentation of the
investment-related accounts at December 31, 2022. (Ignore notes
presentation.)
c. Prepare the journal entry or entries for the 2023 sale of
investment A.
d. Repeat requirement (a), assuming the portfolio of investments is
non-trading.
Transcribed Image Text:E17.13 (LO 2) (Equity Investment Entries and Financial Statement Presentation) At December 31, 2022, the equity investment portfolio for Wenger, Inc. is as follows. Investment Cost Fair Value Unrealized Gain (Loss) A $17,500 $15,000 $(2,500) B 12,500 14,000 1,500 23,000 25,500 2,500 Total $53,000 $54,500 1,500 Previous fair value adjustment balance-Dr. Fair value adjustment–Dr. 200 $1,300 On January 20, 2023, Wenger, Inc. sold investment A for $15,300. The sale proceeds are net of brokerage fees. Instructions a. Prepare the adjusting entry at December 31, 2022, to report the portfolio at fair value. b. Show the statement of financial position presentation of the investment-related accounts at December 31, 2022. (Ignore notes presentation.) c. Prepare the journal entry or entries for the 2023 sale of investment A. d. Repeat requirement (a), assuming the portfolio of investments is non-trading.
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