At December 31, 2020, the available-for-sale debt portfolio for Zorro Foods Corp. is as follows: Apple Banana Crisp Total Security Cost $33,600 175,000 59,400 $268,000 Fair Value $31,000 174,000 68,500 $273,500 December 31, 2020, fair value adjustment balance-Dr. $6,400 On January 20, 2021, Zorro sold Apple for $34,100. The sale proceeds are net of brokerage fees. Instructions: 1. Prepare the adjusting entry at December 31, 2020, to report the portfolio at fair value. 2. Prepare the journal entry for the 2021 sale of Apple.

At December 31, 2020, the available-for-sale debt portfolio for Zorro Foods Corp. is as follows: Apple Banana Crisp Total Security Cost $33,600 175,000 59,400 $268,000 Fair Value $31,000 174,000 68,500 $273,500 December 31, 2020, fair value adjustment balance-Dr. $6,400 On January 20, 2021, Zorro sold Apple for $34,100. The sale proceeds are net of brokerage fees. Instructions: 1. Prepare the adjusting entry at December 31, 2020, to report the portfolio at fair value. 2. Prepare the journal entry for the 2021 sale of Apple.

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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