At December 31, 2020, the available-for-sale debt portfolio for Sheridan, Inc. is as follows. Unrealized Security Cost Fair Value Gain (Loss) A $17,800 $15,500 $(2,300 ) 11,300 14,700 3,400 23,700 26,500 2,800 Total $52,800 $56,700 3,900 Previous fair value adjustment balance-Dr. 300 Fair value adjustment-Dr. $3,600 On January 20, 2021, Sheridan, Inc. sold security A for $15,600. The sale proceeds are net of brokerage fees. Sheridan, Inc. reports net income in 2020 of $117,000 and in 2021 of $148,000. Total holding gains (including any realized holding gain or loss) equal $47,000 in 2021.

At December 31, 2020, the available-for-sale debt portfolio for Sheridan, Inc. is as follows. Unrealized Security Cost Fair Value Gain (Loss) A $17,800 $15,500 $(2,300 ) 11,300 14,700 3,400 23,700 26,500 2,800 Total $52,800 $56,700 3,900 Previous fair value adjustment balance-Dr. 300 Fair value adjustment-Dr. $3,600 On January 20, 2021, Sheridan, Inc. sold security A for $15,600. The sale proceeds are net of brokerage fees. Sheridan, Inc. reports net income in 2020 of $117,000 and in 2021 of $148,000. Total holding gains (including any realized holding gain or loss) equal $47,000 in 2021.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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