At December 31, 2020, the available-for-sale debt portfolio for Windsor, 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, Windsor, Inc. sold security A for $23,405. The sale proceeds are net of brokerage fees. 1). Show the balance sheet presentation of the investment-related accounts at December 31, 2020. 2). Prepare the journal entry for the 2021 sale of security A.
At December 31, 2020, the available-for-sale debt portfolio for Windsor, 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, Windsor, Inc. sold security A for $23,405. The sale proceeds are net of brokerage fees. 1). Show the balance sheet presentation of the investment-related accounts at December 31, 2020. 2). Prepare the journal entry for the 2021 sale of security A.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
At December 31, 2020, the available-for-sale debt portfolio for Windsor, 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, Windsor, Inc. sold security A for $23,405. The sale proceeds are net of brokerage fees.
1). Show the
2). Prepare the
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