At December 31, 2019, the equity investment portfolio for Wenger, Inc. is as follows. On January 20,

Question:

At December 31, 2019, the equity investment for Wenger, Inc. is as follows.

Unrealized Gain (Loss) Investment Cost Fair Value $17,500 $15,000 ($2,500) A в 12,500 14,000 1,500 23,000 25,500 2,500

On January 20, 2020, Wenger, Inc. sold investment A for $15,300. The sale proceeds are net of brokerage fees.
Instructions
a. Prepare the adjusting entry at December 31, 2019, to report the portfolio at fair value.
b. Show the statement of financial position presentation of the investment-related accounts at December 31, 2019. (Ignore notes presentation.)
c. Prepare the journal entry(ies) for the 2020 sale of investment A.
d. Repeat requirement (a), assuming the portfolio of investments is non-trading.

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...

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a The portfolio should be reported at the fair value of 54500 Since the cost of the portfolio is 530...View the full answer

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Intermediate Accounting IFRS

ISBN: 978-1119372936

3rd edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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Question Posted: Nov 23, 2017 09:21 AM

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At December 31, 2019, the equity investment portfolio for Wenger, Inc. is as follows. On January 20,

Question:

Unrealized Gain (Loss) Investment Cost Fair Value $17,500 $15,000 ($2,500) A в 12,500 14,000 1,500 23,000 25,500 2,500 Total $53,000 $54,500 1,500 200 Previous fair value adjustment balance-Dr. Fair value adjustment-Dr. $1,300

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a The portfolio should be reported at the fair value of 54500 Since the cost of the portfolio is 530...View the full answer

Intermediate Accounting IFRS

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