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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.)

image text in transcribed

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

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