At December 31, 2020, the available-for-sale debt portfolio for Windsor, 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, Windsor, Inc. sold security A for $23,405. The sale proceeds are net of brokerage fees. 1). Prepare the adjusting entry at December 31, 2020, to report the portfolio at fair value. 2). Show the balance sheet presentation of the investment-related accounts at December 31, 2020
At December 31, 2020, the available-for-sale debt portfolio for Windsor, 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, Windsor, Inc. sold security A for $23,405. The sale proceeds are net of brokerage fees. 1). Prepare the adjusting entry at December 31, 2020, to report the portfolio at fair value. 2). Show the balance sheet presentation of the investment-related accounts at December 31, 2020
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
At December 31, 2020, the available-for-sale debt portfolio for Windsor, 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, Windsor, Inc. sold security A for $23,405. The sale proceeds are net of brokerage fees.
1). Prepare the
2). Show the
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