Question
At December 31, 2020, the available-for-sale debt portfolio for Ivanhoe, Inc. is as follows. Security Cost Fair Value Unrealized Gain (Loss) A $32,375 $27,750 $(4,625
At December 31, 2020, the available-for-sale debt portfolio for Ivanhoe, Inc. is as follows.
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 balanceDr. | 740 | ||||||
Fair value adjustmentDr. | $2,035 |
On January 20, 2021, Ivanhoe, Inc. sold security A for $27,935. The sale proceeds are net of brokerage fees. Prepare the adjusting entry at December 31, 2020, to report the portfolio at fair value. (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.)
Account Titles and Explanation | Debit | Credit |
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.)
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 | |||
IVANHOE, INC Balance Sheet
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started