At December 31, 2020, the available-for-sale debt portfolio for Pina Corp. is as follows.

Securities		Cost		Fair Value		Unrealized Gain (Loss)
Good Co. Bonds		$29,100		$27,000		$(2,100	)
Home Co. Bonds		30,600		32,200		1,600
Grand Inc. Debentures		38,600		39,500		900
		98,300		98,700		400

Before an adjusting entry on December 31, 2020, the fair value adjustment account contained a credit balance of $430. Pina Corp. reported net income of $72,200 for 2020.

(a)

• Your Answer
• Correct Answer

Partially correct answer icon

Your answer is partially correct.

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
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount

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Solution

List of Accounts

Attempts: 3 of 3 used

(b)

Show the balance sheet presentation of the investment-related accounts at December 31, 2020. (Enter xxx if amount is not known.)

PINA CORP. Balance Sheet choose the accounting period December 31, 2020For the Year Ended December 31, 2020For the Quarter Ended December 31, 2020
select an opening name for subsection one Current AssetsCurrent LiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentRevenuesStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal RevenuesTotal Stockholders' Equity
enter a balance sheet item		$enter a dollar amount
select an opening name for section one Current AssetsCurrent LiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentRevenuesStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal RevenuesTotal Stockholders' Equity
enter a balance sheet item				enter a dollar amount
enter a balance sheet item				enter a dollar amount
enter a balance sheet item				enter a dollar amount
				enter a subtotal of the three previous amounts
select between addition and deduction LessAdd: enter a balance sheet item				enter a dollar amount
select a closing name for section one Current AssetsCurrent LiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentRevenuesStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal RevenuesTotal Stockholders' Equity				$enter a total amount for section one