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At December 31, 2020, the available-for-sale debt portfolio for Whispering, Inc. is as follows. Unrealized Security Cost Fair Value Gain (Loss) A $27,125 $23,250 $(3,875 ) 19,375 21,700 2,325 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

At December 31, 2020, the available-for-sale debt portfolio for Whispering, Inc. is as follows. Unrealized Security Cost Fair Value Gain (Loss) A $27,125 $23,250 $(3,875 ) 19,375 21,700 2,325 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

FINANCIAL ACCOUNTING
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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At December 31, 2020, the available-for-sale debt portfolio for Whispering, Inc. is as follows. Unrealized Security Cost Fair Value Gain (Loss) A $27,125 $23,250 $(3,875 ) 19,375 21,700 2,325 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, Whispering, Inc. sold security A for $23,405. The sale proceeds are net of brokerage fees. (a) Your answer is correct. 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.) Account Titles and Explanation Debit Credit Fair Value Adjustment 1705 Unrealized Holding Gain or Loss - Equity 1705
Transcribed Image Text:At December 31, 2020, the available-for-sale debt portfolio for Whispering, Inc. is as follows. Unrealized Security Cost Fair Value Gain (Loss) A $27,125 $23,250 $(3,875 ) 19,375 21,700 2,325 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, Whispering, Inc. sold security A for $23,405. The sale proceeds are net of brokerage fees. (a) Your answer is correct. 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.) Account Titles and Explanation Debit Credit Fair Value Adjustment 1705 Unrealized Holding Gain or Loss - Equity 1705
Show the balance sheet presentation of the investment-related accounts at December 31, 2020. (Do not leave any answer field blank. Enter O for amounts.) WHISPERING, INC Balance Sheet December 31, 2020 Current Assets Debt Investments $ 84475 Stockholders' Equity Common Stock Additional Paid-in Capital Retained Earnings Less Accumulated other Comprehensive Income 2325 Total Stockholders' Equity $ %24 > > >
Transcribed Image Text:Show the balance sheet presentation of the investment-related accounts at December 31, 2020. (Do not leave any answer field blank. Enter O for amounts.) WHISPERING, INC Balance Sheet December 31, 2020 Current Assets Debt Investments $ 84475 Stockholders' Equity Common Stock Additional Paid-in Capital Retained Earnings Less Accumulated other Comprehensive Income 2325 Total Stockholders' Equity $ %24 > > >
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