At December 31, 2020, the available-for-sale debt portfolio for Novak Corp. is as follows. Securities Good Co. Bonds Home Co. Bonds Grand Inc. Debentures Cost (a) $28,800 31,700 36,700 97,200 Fair Value $26,600 Account Titles and Explanation 33,700 37,800 98,100 Unrealized Gain (Loss) $(2,200 ) 2,000 1,100 Before an adjusting entry on December 31, 2020, the fair value adjustment account contained a credit balance of $470. Novak Corp. reported net income of $80,100 for 2020. 900 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 o for the amounts.) Debit Credit
At December 31, 2020, the available-for-sale debt portfolio for Novak Corp. is as follows. Securities Good Co. Bonds Home Co. Bonds Grand Inc. Debentures Cost (a) $28,800 31,700 36,700 97,200 Fair Value $26,600 Account Titles and Explanation 33,700 37,800 98,100 Unrealized Gain (Loss) $(2,200 ) 2,000 1,100 Before an adjusting entry on December 31, 2020, the fair value adjustment account contained a credit balance of $470. Novak Corp. reported net income of $80,100 for 2020. 900 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 o for the amounts.) Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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