At December 31, 2020, the available-for-sale debt portfolio for Whispering, Inc. is as follows. Security   Cost   Fair Value   Unrealized Gain (Loss) A   $ 27,125   $ 23,250   $( 3,875 ) B   19,375   21,700   2,325   C   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
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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At December 31, 2020, the available-for-sale debt portfolio for Whispering, Inc. is as follows.

Security
 
Cost
 
Fair Value
 
Unrealized
Gain (Loss)
A   $ 27,125   $ 23,250   $( 3,875 )
B   19,375   21,700   2,325  
C   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.

 

 

Prepare the journal entry for the 2021 sale of security A. (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.)
Date
Account Titles and Explanation
Debit
Credit
Jan. 20,
2021
Transcribed Image Text:Prepare the journal entry for the 2021 sale of security A. (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.) Date Account Titles and Explanation Debit Credit Jan. 20, 2021
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