At December 31, 2017, the available-for-sale debt portfolio for Steffi Graf, Inc. is as follows. Security Cost Fair Value Unrealized Gain (Loss) A $17,500 $15,000 $(2,500) B 12,500 14,000 1,500 C 23,000 25,500 2,500 Total $53,000 $54,500 1,500 Previous fair value adjustment balance-Dr 400 Fair value adjustment-Dr $1,100 On January 20, 2018, Steffi Graf, Inc. sold security A for $15,100. The sale proceeds are net of brokerage fees. A. Prepare the adjusting entry at December 31, 2017, to report the portfolio at fair value. B. Show the balance sheet presentation of the investment-related accounts at December 31, 2017.
At December 31, 2017, the available-for-sale debt portfolio for Steffi Graf, Inc. is as follows. Security Cost Fair Value Unrealized Gain (Loss) A $17,500 $15,000 $(2,500) B 12,500 14,000 1,500 C 23,000 25,500 2,500 Total $53,000 $54,500 1,500 Previous fair value adjustment balance-Dr 400 Fair value adjustment-Dr $1,100 On January 20, 2018, Steffi Graf, Inc. sold security A for $15,100. The sale proceeds are net of brokerage fees. A. Prepare the adjusting entry at December 31, 2017, to report the portfolio at fair value. B. Show the balance sheet presentation of the investment-related accounts at December 31, 2017.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At December 31, 2017, the available-for-sale debt portfolio for Steffi Graf, Inc. is as follows.
Security Cost Fair Value Unrealized Gain (Loss)
A $17,500 $15,000 $(2,500)
B 12,500 14,000 1,500
C 23,000 25,500 2,500
Total $53,000 $54,500 1,500
Previous fair value adjustment balance-Dr 400
Fair value adjustment-Dr $1,100
On January 20, 2018, Steffi Graf, Inc. sold security A for $15,100. The sale proceeds are net of brokerage fees.
A. Prepare the
B. Show the
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