Prepare the adjusting entry at December 31, 2020, to report the portfolio at fair value.
Q: Adjusting AFS Debt Securities to Fair Value A portfolio of investments of available-for-sale…
A: Step 1 Fair value adjustments, is the adjusted value of the investment at each reporting date as per…
Q: At December 31, 2020, the available-for-sale debt portfolio for Zorro Foods Corp. is as follows:…
A: 1) Prepare the adjusting entry at December 31, 2020, to report the portfolio at fair value:-…
Q: Prepare the journal entry to record the credit loss, if any (and any other adjustment needed), at…
A: Available-for-Sale Securities -Securities are debt or equity investments made by a corporation that…
Q: On its December 31, 2024 balance sheet, Calhoun Company appropriately reported a $10,000 debit…
A: The unrealized gain or loss on the investment is determined by comparing the cost of the investment…
Q: At December 31, 2020, the available-for-sale debt portfolio for Novak Corp. is as follows.…
A: fair value represents the most recent and pertinent assessment of an investment, it is especially…
Q: At December 31, 2020, the available-for-sale debt portfolio for Windsor, Inc. is as follows.…
A: Particular Amount ($) Fair value of portfolio 84475 Cost of portfolio -82150 Unrealized…
Q: At December 31, 2020, the available-for-sale debt investment for Zorro Community Bancorp has…
A: Other comprehensive income is that income which is not the part of profit and loss(P/L) account.…
Q: At December 31, 2020, the available-for-sale debt portfolio for Cheyenne Corp. is as follows.…
A: Calculation of unrealized gain/loss on investment in Bond. The result of above :
Q: ecurity A B C Total Cost $16.985 12,930 21,760 $51,675 Fair Value $16.030 15,179 18,160 $49,369
A: A journal entry is a basic accounting record that is used to chronologically track financial…
Q: lassification Cost or Amortized Cost Fair Value at end if 2017 Interest Income in 2017 Sales Price…
A: Accumulated Other Comprehensive account includes the gain or loss that arose from the equity section…
Q: Tamarisk Company in its first year of operations provides the following information related to one…
A: (a) Available-for-sale securities should be recorded at the fair value. Therefore, difference…
Q: At December 31, 2020, the available-for-sale debt portfolio for Sheridan, Inc. is as follows.…
A: Statement of comprehensive income is the statement prepared to show all the other incomes along with…
Q: Record the year-end entry to adjust the debt investments to fair value.
A: The adjustment in the available for sale securities be it a debt or an equity requires to determine…
Q: At December 31, 2020, the available-for-sale debt portfolio for Whispering, Inc. is as follows.…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: At December 31, 2020, the available-for-sale debt portfolio for Shamrock, Inc. is as follows.…
A: 1. Balance Sheet (Partial) Particulars Amount Current Assets Debt Investments $100,825…
Q: Carla Company in its first year of operations provides the following information related to one of…
A: Expected credit losses as per IFRS 9 If any financial asset is credit impaired then credit losses…
Q: At December 31, 2020, the available-for-sale debt portfolio for Sheridan, Inc. is as follows.…
A: Net income is the excess of revenue over expenses. So, any amount of revenues over and above the…
Q: Metlock Corporation has the following trading portfolio of debt investments as Security Cost A…
A: A journal entry is a basic accounting record that is used to chronologically track financial…
Q: Debt Investments Classification Cost or Amortized Cost Fair Value at end if 2017 Interest Income in…
A: The income statement represents the net income or net loss that is calculated by the deducted…
Q: Before an adjusting entry on December 31, 2020, the fair value adjustment account contained a credit…
A: Net Fair value adjustment = $800 ( $1600 + $1000 - $1800) The adjusting entries to reflect the…
Q: On 1 January 2020, an entity purchased a debt instrument at its face value of P1,000,000. The…
A: As per IFRS expected credit loss is to be recognized in other comprehensive income section of…
Q: Show the balance sheet presentation of the investment-related accounts at December 31, 2020. (Do not…
A: Balance sheet is the financial statement that reflects the liabilities, owner’s capital, and assets.
Q: Prepare the journal entry for the 2021 sale of security A
A: Journal entry: Journal entry is the book of original entry where first transactions are recorded in…
Q: On its December 31, 2020 balance sheet, Wildhorse Company appropriately reported a $10,000 debit…
A: Unrealized gain or loss is the gain or loss that has not been realized in the financial statement of…
Q: At December 31, 2020, the available-for-sale debt portfolio for Whispering, Inc. is as follows.…
A: On the reporting date all securities are valued at fair value and difference will be transferred to…
Q: At December 31, 2020, the available-for-sale debt portfolio for Steffi Graf, Inc. is as follows.…
A: Income statement: The financial statement which reports revenues and expenses from business…
Q: At December 31, 2020, the available-for-sale debt portfolio for Steffi Graf, Inc. is as follows.…
A:
Q: On its December 31, 2024 balance sheet, Sandhill Company appropriately reported a $10,000 debit…
A: An unrealized loss is a loss that results from holding an asset that has decreased in price, but not…
Q: At December 31, 2020, the available-for-sale debt securities for Larkspur, Inc. are as follows.…
A: Unrealized Gain/ Loss - Available of Sale Securities should always reported at fair value. At the…
Q: Morley Company in its first year of operations provides the following information related to one of…
A: Available for sale securities are purchased with an intent to sell in the near future but not to…
Q: At December 31, 2025, the available-for-sale debt portfolio for Pharoah, Inc. is as fol Unrealized…
A: Unrealized holding gains or losses refer to changes in the fair value of assets, such as…
Q: Marigold Company in its first year of operations provides the following information related to one…
A: Journal: Recording of a business transactions in a chronological order.
Q: At December 31, 2022, available-for-sale debt securities for Storrer, Inc. are as follows. The…
A: Answer:- Fair value meaning:- When a buyer and a seller voluntarily agree on a price for an object,…
Q: At December 31, 2020, the available-for-sale debt portfolio for Crane, Inc. is as follows. Security…
A: Fair value is defined as the value that each item fetches when it is traded in the marketplace. It…
Q: At December 31, 2017, the available-for-sale debt portfolio for Steffi Graf, Inc. is as follows.…
A: Given the following information: Additional information: On January 20, 2018, Steffi Graf, Inc.…
Q: At December 31, 2020, the available-for-sale debt portfolio for Windsor, Inc. is as follows.…
A: Computation of Unrealized Holding Gain: Total Unrealized Holding Gain = $2325. Less: Previous Fair…
Q: On its December 31, 2020 balance sheet, Blossom Company appropriately reported a $10,000 debit…
A: Fair value adjustment account is a contra asset account in which the difference between cost and…
Q: Security A B C Cost $17,500 12,500 23,000 $53,000 Fair Value $16,000 14,000 21,000 $51,000
A: Adjusting entries ensures that the financial statements of a business (such as the income statement…
Q: At December 31, 2020, the available-for-sale debt portfolio for Ivanhoe, Inc. is as follows.…
A: The question is based on the concept of Financial Accounting.
|
Security
|
Cost
|
Fair Value
|
Unrealized
Gain (Loss) |
||||
| A | $32,375 | $27,750 | $(4,625 | ) | |||
| B | 23,125 | 25,900 | 2,775 | ||||
| C | 42,550 | 47,175 | 4,625 | ||||
| Total | $98,050 | $100,825 | 2,775 | ||||
| Previous fair value adjustment balance—Dr. | 740 | ||||||
| Fair value adjustment—Dr. | $2,035 |
On January 20, 2021, Kingbird, Inc. sold security A for $27,935. The sale proceeds are net of brokerage fees.
|
Account Titles and Explanation
|
Debit
|
Credit
|
|
|
|
|
|
|
|
|
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- At December 31, 2020, the available-for-sale debt portfolio for Whispering, Inc. is as follows. Security Cost Fair Value UnrealizedGain (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.At December 31, 2020, the available-for-sale debt portfolio for Windsor, Inc. is as follows. Security Cost Fair Value UnrealizedGain (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). Prepare the adjusting entry at December 31, 2020, to report the portfolio at fair value. 2). Show the balance sheet presentation of the investment-related accounts at December 31, 2020At December 31, 2020, the available-for-sale debt portfolio for Windsor, Inc. is as follows. Security Cost Fair Value UnrealizedGain (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 Shamrock, Inc. is as follows. Security Cost Fair Value UnrealizedGain (Loss) A $32,375 $27,750 $(4,625 ) B 23,125 25,900 2,775 C 42,550 47,175 4,625 Total $98,050 $100,825 2,775 Previous fair value adjustment balance—Dr. 740 Fair value adjustment—Dr. $2,035 On January 20, 2021, Shamrock, Inc. sold security A for $27,935. The sale proceeds are net of brokerage fees. Part 1 Show the balance sheet presentation of the investment-related accounts at December 31, 2020. (Do not leave any answer field blank. Enter 0 for amounts.) SHAMROCK, INCBalance Sheet $ : $…At December 31, 2020, the available-for-sale debt portfolio for Sheridan, Inc. is as follows. Security Cost Fair Value UnrealizedGain (Loss) A $ 17,800 $ 15,500 $( 2,300 ) B 11,300 14,700 3,400 C 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. (a) Prepare a statement of comprehensive income for 2020, starting with net income. SHERIDAN, INCStatement of Comprehensive Income $ $At December 31, 2020, the available-for-sale debt portfolio for Sheridan, Inc. is as follows. Security Cost Fair Value UnrealizedGain (Loss) A $ 17,800 $ 15,500 $( 2,300 ) B 11,300 14,700 3,400 C 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. Prepare a statement of comprehensive income for 2020, starting with net income. SHERIDAN, INCStatement of Comprehensive Income $ $
- At December 31, 2020, the available-for-sale debt portfolio for Ivanhoe, Inc. is as follows. Security Cost Fair Value UnrealizedGain (Loss) A $17,100 $14,200 $(2,900) B 11,800 15,300 3,500 C 22,000 25,600 3,600 Total $50,900 $55,100 4,200 Previous fair value adjustment balance—Dr. 300 Fair value adjustment—Dr. $3,900 On January 20, 2021, Ivanhoe, Inc. sold security A for $14,300. The sale proceeds are net of brokerage fees.Ivanhoe, Inc. reports net income in 2020 of $117,000 and in 2021 of $141,000. Total holding gains (including any realized holding gain or loss) equal $42,000 in 2021. 1. Prepare a statement of comprehensive income for 2020, starting with net income. 2. Prepare a statement of comprehensive income for 2021, starting with net income.At December 31, 2020, the available-for-sale debt portfolio for Kingbird, Inc. is as follows. Security Cost Fair Value UnrealizedGain (Loss) A $32,375 $27,750 $(4,625 ) B 23,125 25,900 2,775 C 42,550 47,175 4,625 Total $98,050 $100,825 2,775 Previous fair value adjustment balance—Dr. 740 Fair value adjustment—Dr. $2,035 On January 20, 2021, Kingbird, Inc. sold security A for $27,935. The sale proceeds are net of brokerage fees. Show the balance sheet presentation of the investment-related accounts at December 31, 2020. (Do not leave any answer field blank. Enter 0 for amounts.) KINGBIRD, INCBalance Sheet December 31, 2020For the Year Ended December 31, 2020For the Quarter Ended December 31, 2020 Show the balance sheet presentation of the investment-related accounts at December 31, 2020. (Do not leave any answer field…At December 31, 2020, the available-for-sale debt portfolio for Kingbird, Inc. is as follows. Security Cost Fair Value UnrealizedGain (Loss) A $32,375 $27,750 $(4,625 ) B 23,125 25,900 2,775 C 42,550 47,175 4,625 Total $98,050 $100,825 2,775 Previous fair value adjustment balance—Dr. 740 Fair value adjustment—Dr. $2,035 On January 20, 2021, Kingbird, Inc. sold security A for $27,935. 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 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 20, 2021
- PLEASE HELPAt December 31, 2020, the available-for-sale debt portfolio for Crane, Inc. is as follows. Security A B C Total Previous fair value adjustment balance-Dr. Fair value adjustment- Dr. Cost $17,500 12,200 500 Fair Value $1,300 $15,000 23,400 25,700 $53,100 $54,900 14,200 Unrealized Gain (Loss) $(2,500 2,000 2,300 1,800 ) On January 20, 2021, Crane, Inc. sold security A for $15,100. The sale proceeds are net of brokerage fees. Crane, Inc. reports net income in 2020 of $118,000 and in 2021 of $143,000. Total holding gains (including any realized holding gain or loss) equal $49,000 in 2021. Prepare a statement of comprehensive income for 2020, starting with net income. Prepare a statement of comprehensive income for 2021, starting with net income. Please show underlying calculations (especially for reclassification adjustment for 2021). I correctly identified the statement of income for 2020, but am stuck on the one for 2021. Thank you!At December 31, 2020, the available-for-sale debt portfolio for Steffi Graf, Inc. is as follows. Security Cost Fair Value Unrealized Gain (Loss) A $17,500 $15,000 ($2,500) B 12,500 14,000 1,500 C 23,000 25,500 2,500 Total $53,000 $54,500 1,500 Previous fair value adjustment balance—Dr. 400 Fair value adjustment—Dr. $1,100 On January 20, 2021, Steffi Graf, Inc. sold security A for $15,100. The sale proceeds are net of brokerage fees. Assume that Steffi Graf, Inc. reports net income in 2020 of $120,000 and in 2021 of $140,000. Total holding gains (including any realized holding gain or loss) equal $40,000 in 2021. Instructions a. Prepare a statement of comprehensive income for 2020, starting with net income. b. Prepare a statement of comprehensive income for 2021, starting with net income.